in one year from the dates authorized by the act of 
Congress, approved December 23d, 1857, and the 
Treasury Notes payable in sixty days from date, 
authorized by act of Congress, approved^ March 2d, 
1861, The interest on tho Treasury notes of the 
above issues will cease April 7th next, by terma of 
acts respectively. 
The Secretary of the Treasury, on the 4th inst, 
received from the Governor of California the follow¬ 
ing telegram: 
Sacramento, January 31. 
I am instrncted, by resolution of the Legislature 
of California, to inform you that this State will 
assume and pay into the Treasury of the United 
States a direct tax of $264,538, apportioned to thin 
State liy act of Congress. 
(Signed) Leland Stanford, 
Governor of California*. 
Small coin continues Bcarce for business transac¬ 
tions. In order to preclude small notes coming 
from a distance, and some of them counterfeits, a 
bill was introduced iDto the Senate on the 7th inst, 
authorizing the Washington corporation to issue 
notes of less denomination than $5, to an amount 
not exceeding $10,000, redeemable in current bank 
notes at oar in Washington, or in United States 
now charged with the duty of providing a national 
cemetery for the soldiers in this neighborhood, where 
all our fellow citizens who die in the national cause 
will find a resting place, and their graves become 
matters of record, to the end that no doubt may 
exist as to the identity of those who repose within 
them. From the general disposition manifested, 
there seems to be no doubt that an act for the pur¬ 
pose indicated will be passed. 
It is distinctly stated that Orders have gone for¬ 
ward to Marshal Murray and District Attorney 
Smith to compel the parties who sold or chartered 
improper vessels to the War Department for the 
Burnside expedition to return the Bums or go to 
prison. A firm in New York city, known to have 
been violently secession long after the fall of Sum¬ 
ter will, it iB stated, be the first one called upon. 
Loyal men regard it as very strange that this firm 
should have been employed. As far bock as last 
May and June it was in open and avowed sym¬ 
pathy with secession. Treachery as well as fraud is 
suspected in the fitting out of the Burnside expedi¬ 
tion, and those who have sworn to falsehoods in 
respect to the draft of their vessels will be com¬ 
pelled to refund. 
The following order has been issued by the Com- 
mander-in-Chief: 
BPKCIA1, OIUlKR, NO. 3L 
Headquarters os tiik Army of the Potomac, ? 
Washington, January 31. 5 
The Commanding General thanks Lieutenant 
Colonel John Burke, 37th N. Y. Volunteers, and 
the handful of brave men of that regiment, and the 
1st New Jersey cavalry under his command, for their 
services in the affair at Belmont or Oecoquan Bay, 
on the night of tho 28th. Their coolness tinder fire, 
and the discretion and judgment displayed by 
Lieutenant Colonel Burke, have won the confidence 
ol the Commanding General, who recognizes in 
these qualities the result ol' discipline and attention 
death. They arc no more nor less than spies, and 
probably are sent bv voti to this city to act as such. 
] shall send Mr. Nicholas back to your camp, but if 
you send any more persons here in the same way. 
they will be regarded as spies, and tried and con¬ 
demned as such. You must know, General, that 
the laws and usages of war require that a bearer of 
a flag of truce should report ut the nearest post, and 
should not pass the outer line of sentinels without 
permission. He should not even approach within 
gunshot of a sentinel without displaying his flag 
and receiving a signal to advance. If he have dis¬ 
patches, he should send for an officer to receive and 
' » i .. il ___ 1. 7 . t_ r.Al Ann ek/ili Iff tVlO f i n I f 
We steadily advanced; every man at his poet, and 
every ear strained to catch the flag-officer g signal 
gun for the commencement of action. Our line of 
battle was on the left, the St. Louis next, Carondelet 
next—the Cincinnati, for the time being, was flag- 
board flag-officer Foote—and next 
fully one-half the troops they have in the field 
expires before the 25th of February. They regard 
his resistance of the demand fora “ forward move¬ 
ment" and the silent energy he has evinced, as marks 
of. Generalship of the highest order, and of a deter¬ 
mination to work out Ins plan of operations despite 
the complaints of those who do not comprehend his 
purpose. 
Ttlfc RKItfcL 8 DISMRITEfl. 
Since tho defeat and death of Zollicoffer in Ken¬ 
tucky, the entrance of Burnside into Pamlico Sound, 
and the threatened position of Savannah, Mr. 7 ay- 
lor assures me that there has been a marked and 
undisputed feeling of despondency among the rebelB 
at Richmond, Their greatest fear rests on the proba¬ 
bility that railroad communication will be inter¬ 
rupted by Gen. Burnsicie in North Carolina, and by 
Gen. Buell in Tennessee, which they admit will 
render them helpless, and break the back of rebel¬ 
lion. 
Up to within the past ten days there has been an 
abundance of excellent beef furnished to the prison¬ 
ers at Richmond, and good bread, bullately the beef 
has been of the most inferior quality and very scarce. 
3’he reason given for this is that the roads w ere too 
bad to drive cuttle, and the railroads are occupied 
with the transportation of troops. Mr. Taylor was 
assured that their troops were faring badly, and that 
great dissatisfaction prevailed on that account. 
HUATUKINGB OK LOYAL VIRGINIANS. 
While the Federal prisoners have been badly 
accommodated, and have undoubtedly Buffered very 
much, Mr. Taylor assures me that their sufferings 
have been nothing to compare with those of 160 loyal 
Virginians, who are still confined at Richmond. 
They have been thrown into jail without a hearing, 
and compelled to prove their innocence of the charge 
against them. The charge of disloyalty against them 
has shut out all aid from their friends, as any 
evidence of sympathy with them brings suspicion 
on those who may evince it. One old man, nearly 
70 years of age, both blind and deaf, is said to be 
among them. 
MISCELLANEOUS. 
Mr. Taylor, like all the prisoners from Richmond, 
speaks in the highest terns of the kindness of Gen. 
Winder and Gen. Huger, and also of some other 
Southern officers, who protected him from the bru¬ 
tality of others. 
The expedition of Gen. Jackson to Romney is 
said to have been without the sanction of his supe¬ 
rior officers, and has resulted in great suffering and 
loss of life to his command. They were caught in 
the mountains in a heavy snow storm; many were 
frozen to death, others frost-bitten, and all are 
reported to be in a deplorable condition. A greater 
portion of his force had returned to Winchester, 
broken down with the exposure, fatigue and hard¬ 
ships they had been called upon to endure. The 
withdrawal of the Federal forces from Romney on 
Jackson's approach is regarded in military circles 
at Richmond as having been another evidence of 
Gen. McClellan’s military superiority. 
ship, having on 
the Essex. 
We advanced in line, the Cincinnati about a 
length ahead, when at 12:30 the Cincinnati opened 
the bull, and immediately the three accompanying 
boats followed suit. The enemy was not backward, 
and gave an admirable response, and the battle 
raged fiercely for half an hour. We steadily 
advanced, meeting and returning showers of shot 
and shell; and when getting within 300 yards of the 
enemy's works, came to a stand still, and poured 
the iron hail into them right and left In the mean¬ 
time, the Essex lmd been disabled and drifted away 
from the scene of action, leaving the Cincinnati, 
Carondelet and St. Louis alone engaged. At 1:40 
precisely, the enemy struck his colors, and such 
cheering and wild excitement as seized the throats 
of the 400 or 500 sailors on board the gunboats, can 
be more easily imagined Ilian described. 
Tilghman defended liis post in a most determined 
manner. We found that the rebel infantry, encamped 
outside of the fort, to (he number of lour or five 
thousand, had “cut and run,” leaving the rebel 
artillery company in command of the fort. 
The fort mounted seventeen guns, mostly 32 and 
34-poundcrs, one being a magnificent 10-inch coliitu- 
biad. Our sbote dismounted two of the guns, driv¬ 
ing the enemy into the embrasures. One of the 
rebels’ 32-pounders burst during the engagement, 
wounding the gunners. 
The rebels claimed to have had eleven effective 
guns, worked by eighty-four men—tho number, all 
told, of our prisoners. They lost five killed and ten 
badly wounded. 
The infantry left everything in their flight. A 
vast deal of plunder has fallen into our hands, 
including a large and valuable quantity of ordnance 
stores. 
Tilghman is disheartened. He thinks it one of 
the most damaging blows of the war. In surren¬ 
dering to Flag-Officer Foote, he said: “ 1 am <jlad to 
surrender to so gallant an officer.'’ 
Flag-Officer Foote replied: “ You do perfectly 
right, sir, in surrenderingj hut you should have blown 
my boats out of the water before T should have sur¬ 
rendered to you.” 
In the engagement the Cincinnati was in the lead, 
with flags flying. The officer’s pennant was the chief 
mark. Flag-Officer Foote and Capt Stimblo crowded 
her defiantly into the teeth of the enemy’s guns. 
She got 31 shots, somo of them going completely 
through her. 
The Essex was badly crippled when about half 
through the fight, and crowding steadily against the 
enemy, a ball went into her side forward port, 
through the heavy bulkhead, and squarely through 
one of her boilers. The escaping steam scalded and 
killed several of the crow. The escaping steam 
went into the pilot house, instantly killing Messrs. 
Ford and Bride, pilots. Many of the soldiers, at 
the rush of steam, jumped overboard and were 
drowned. The Cincinnati had one killed and six 
wounded. The Essex had six seamen killed, and 
seventeen were wounded and five missing. There 
were no casualties on the St. Louis or Carondelet, 
though shot and shell fell upon them. 
Directly after the capture, the gunboats Lexing¬ 
ton, Tyler and Conestoga, started up the river, with 
instructions to proceed as far as they saw tit. The 
Conestoga left in charge of Colonels Webster, Hig¬ 
gins and McPherson, of General Grant’s staff, made 
a reconnoissane© as far as the bridge of tho Memphis 
and Clarksville railroad, at Danville. They found 
quarters had been built at the bridge and bad been 
occupied by some troops, and also found a large 
quantity of arms, army supplies, commissary stores, 
negroes, <fec. The people were deserting their 
houses for miles around, and flying in every direc¬ 
tion. The Danville bridge was partially destroyed 
by the first gunboats that went up the river, and one 
of the piers was crippled so as to completely pre¬ 
vent the passage of trains. 
All the prisoners taken—about 100—have been 
sent to Cairo. The amount of property taken will 
this Department. You have my perfect confidence, 
and you may rely upon my utmost support in your 
undertakings. 
Tho pressure of my engagements has kept me 
from writing you, but I will do so in a few days. 
Edwin M. Stanton, See. of War. 
Major-General Hallcck: —3’hank Gen. Grant, Flag 
Officer Foote, and their commands, for me. 
G. B. McClellan, Commander-in-Chicf. 
The latest intelligence from this Department is to 
the 10th inst,, and is as follows: 
Two dispatches received by Gen. Hal leek state 
that Gen. Curtis, south of Lebanon, Missouri, lmd 
taken twenty-nine prisoners, including two Cor¬ 
porals and one Quartermaster. A quantity of flour 
was also captured. 
The Democrat has a special dispatch dated Fort 
Henry, Term., 10th inst., which says that 200 of the 
2d Illinois cavalry, while on a reconnoitering expe¬ 
dition. met a company of the enemy’s horse, charged 
among them, killed and took twenty-five prisoners, 
their Captain among others. Only one of our men 
was wounded. 
In consequence of Gen. Smith’s appointment not 
having boon confirmed by the Senate, that officer 
transferred the command of his division to General 
Wallace, and will leave for Paducah immediately. 
Gens. Grant and McClernand telegraphed to Wash¬ 
ington vouching for Smith’s loyalty and efficiency, 
and urging that the Senate re-consider its action. 
Gen. Grant and staff have just made a rccounois- 
sance in the vicinity of Fort Donclson. Tho steamer 
W. H. B. has returned from the railroad bridge with 
a lot of horses, wagons, commissary stores, <fcc. 
Department of Kansas. 
Private advices from Kansas state that Gen. 
Lane was there about the first instant, and said be 
had [not accopted his commission as Brigadier- 
General, and that he visited the State only as a 
member of the Senate Military Committee. He 
declined to assume any military character, but 
maintained the most friendly relations with General 
Hunter, between whom and himself there is no 
differenccjof sentiment in regard to slavery and the 
war. 
Commissioner Wm. P. Dale had an interview on 
the 1st inst. with the various Indian Chiefs, includ¬ 
ing the loyal Creeks and Seminofes. The Commis¬ 
sioner promised to aid the loyal Indiana against tho, 
rebels, and the Chiefs agreed to take the field with 
their warriors. 
Col. Deitzler, of the Kansas 1st, and Jennison, of 
the 7th, have been appointed acting Brigadier-Gen¬ 
erals. Friends of General Lane declare he. will 
enter the military service if he has to serve as 
a private. 
The Santa Fe mail with dates to tho 20th, has 
arrived. Nothing of interest has occurred in the 
Territory since last week. 
The Indians are more troublesome than ever— 
killing Mexicans and driving off stock. Six dead 
bodies were brought to Albuquerque last week. 
All able bodied men are iq the field, leaving the 
old and feeble to protect their homes. 
No advance of troops to the South has been made, 
and no signs of Texans coming up the Pecos. 
Department of tlie Ohio. 
Special dispatches state that Gen. Wilsou’B 
division left New Haven on Thursday, and ad¬ 
vanced to Green River above Mumfordsville, and 
that Gen. Thomas’ advance was at Monticello. 
They could not’procecd further owing to tho condi¬ 
tion of the roads. The country around was com¬ 
pletely deserted. 
Assistant Secretary of AVar Scott was at Indian¬ 
apolis on Thursday on an official visit, and left for 
Kentucky on the Sth. 
Gen. Wallace’s division has left Smithland for 
Fort Donclson, on Cumberland River. 
A special Indianapolis dispatch of the Sth to the 
Cincinnati Commercial, says Gen. Thomas’ division 
made a forward movement, and will invade East 
Tennessee at three different points. Gen. Carter 
goes to Cumberland Gap. Gen. Schoepff by the 
central route, and Gen. Thomas with Mansion and 
McCooks brigades will cross at Mill Spring. They 
will advance immediately on Knoxville, where they 
will take possession of the railroad, cutting off sup¬ 
plies and communication with the rebel government. 
Forty-six ol the prisoners captured at the Mill 
Spring fight were brought to Louisville on the Sth. 
Among them are Lieut. Colonel M. B. Carter of the 
20th Tennessee, and three lieutenants ot other rebel 
regiments. 
Col. Garfield is at Paintville, with sufficient force 
to preserve order. 
The Virginia and South Carolina regiments under 
Humphrey Marshall, have gone back to Virginia. 
Marshall and the rest of his forces went to Pound 
Gap, where he disbanded them. The present 
whereabouts of Marshall is not known. 
A rumor prevails that a party of rebel cavalry, 
supposed to belong to Morgan’s force, wore sur¬ 
prised on the 7th inst. between Lebanon and,Green 
River, and 40 of them killed. No Federal loss. 
Later rumors say that Morgan has been captured. 
Capt. II. M. Fogg, of Nashville, belonging to Gen. 
Zollicofler’s staff, who was wounded near Somerset, 
is dead. Major Cliff, surgeon of Zollicoffer’s bri¬ 
gade, taken prisoner at Somerset, is in Louisville, 
and will be sent to Bowling Green, to be exchanged, 
it is supposed. 
Gen. Buell will arrange for the exemption of all 
surgeons from arrest hereafter. 
Fort Henry, our forces immediately proceeded up 
the river, in the direction of' the railroad, sixteen 
miles distant, and on the way reduced batteries of 
the enemy on the bank of the river. 
Specials to the Commercial and Gazette, give addi¬ 
tional particulars of tho capture of Fort Henry. At 
the time of the attack, the rebel infantry were in 
camp eating dinner, and they abandoned every¬ 
thing, leaving thousands of shot guns and all their 
camp equipage and clothing. 
In pursuing tho enemy, Major McCulloch, of Col. 
Dickey’s cavalry, captured four guns, Col. J. A. 
Logan lour guns and thirty-three prisoners. The 
guns are brass six-pounders, and in fine order. 
The news from Missouri indicates that the prepa¬ 
rations for a decided blow against the enemy are 
nearly completed; the forces for this movement are 
nearly all concentrated at the points wherever it is 
intended to move against the adversary, and in a 
few days they will probably be on the march west¬ 
ward. Gen. Siegel and Gen. Asbotli’s divisions 
have reached Lebanon, and Maj. Wright’s battalion 
of cavalry has moved thirteen miles west oflliat point 
Gen. Davis’ brigade was reported to be crossing the 
Osage River on Wednesday, and a portion of it was 
expected to arrive, at Lebanon on Thursday. 
Two of Maj. Wright's scouts report that Brice has 
made, a speech to his troops, telling them they were 
surrounded, and that they must fight or surrender, 
and that they all decided to fight Price is said to 
have been heavily re-enforced from Arkansas, and 
to have collected large supplies of provisions on the 
road leading from Springfield to Fayette ville. 
Capt AVood had arrived at AVaynesvillo with 
twenty-seven prisoners, including five Captains 
taken between Lebanon and Springfield. 
General Halleck has been inditing another letter 
to General Brice. It reads thus: 
IIkadquakticks Dki'AIitmknt ok Missouri, 1 
8t. Louis, JtinURTv 27, 1861. 3 
Major-General Sterling Price, Commanding, d-r ., 
Springfield:— General- A man calling himself L. 
Y. Nicholas came to my headquarters a day or two 
since, with a duplicate of your letter of the 12th 
inst On being questioned, he admitted that he 
belonged to your service, that he had como in citi¬ 
zen’s dross from Springfield, avoiding some of our 
military posts, and passing through others in dis¬ 
guise, ana without reporting himself to the com¬ 
manders. He said that he had done this by your 
direction. On being asked for his flag of' truce, he 
The President has approved the joint resolution 
to authorize the Secretary of War to procure from 
such officers and enlisted men of the United States 
array as are now or may hereafter be held as pri¬ 
soners of war in the so-called Confederate States, 
from time to time, their respective allotments of 
pay to their families or friends, upon which certified 
allotments the Secretary shall cause drafts to be 
made, payable in the cities of New York or Boston, 
to the order of such person to whom the allotments 
were or may be made, and remit the drafts to the 
address of such person or persons as may be desig¬ 
nated. 
The various rumors to the effect that Secretary 
Stanton is to assume the active management of the 
army, leaving to Gen. McClellan the command of 
the army of the Potomac only, has this foundation 
simply:—A week since the Btaff of Gen. McClellan 
were notified to he in readiness for a forward move¬ 
ment across the river. They made every prepara¬ 
tion for so doing, and Major E. M. Green, of their 
number, went to New York for tho purpose of pur¬ 
chasing certain personal supplies for their use. In 
consequence of the state of' the roads they have not 
been ordered over, but they are ready to go, and 
when they go, Gen. McClellan will turn over to the 
temporary charge of Air. Stanton the control of the 
entire army, with the exception of the army of the 
Potomac. It will be remembered that when Gen. 
Scott went to Mexico he pursued a similar course, 
thus leaving himself free to attend to the more 
important, matter in hand. Gen. McClellan and Mr. 
Stanton are on the best of terms. 
Secretary Stanton makes himself felt from end to 
end ot the Wa»- Department. Veteran heads of 
Bureaus are startled to find on papers referred to 
them, the endorsement “report forthwith,” words 
never used in any circumlocution office. Door¬ 
keepers are apprised that action is bettor than 
Bpeech in case of visitors who insist upon entering 
on dayB when the Department is closed, and notes 
are made of the names of officers who importune to 
break the rules. 
The order of Secretary Chase directing the pay¬ 
ment of coupons of the 19th inst.—7.30 bonds—in 
New York, will be so far modified as to make them 
payable at AVaaliington, und by the Assistant Treas¬ 
urers at Boston and Philadelphia. This security is 
thought to be as important to holders as the Gov¬ 
ernment. Notice is given of the readiness of this 
Department to redeem the Treasury notes payable 
Department of .11 insonrI. 
The principal feature of the week in this 
Department has been the capture of Fort Henry, by 
the gun-boat fleet under command of Flag-Officer 
Foote. The. following are the official dispatches: 
“Fort Henry is ours! Tlie flag of the Union is 
re-establisbed on the soil of Tennessee. It will 
never be removed. 
“ By command of “ Ma.l-G ex. Hxlleck.” 
Secretary Welles received the following dispatch: 
U. S. Ki.aq 8mr Cincinnati, 7 
Off Kurt Husky, h'ebnmry 6, ISf/J, 5 
Secretary AVelles; —The gunboats under my 
command,—tho Essex, Com. Porter; the Caron do¬ 
le t, Com. Walker, the Cincinnati, Com. Stembell; 
the St Louis, Lt. Com, Paulding; the Conestoga. 
Lt Com. Phelps: the Tyler, Lt Com, Guivern; and 
the Lexington, Lt Com. Shirk, -after a severe and 
rapid lire of an hour and a quarter,—have captured 
Fort Henry, und have taken Gen. Lloyd Tilghman 
and his staff, with sixty men, as prisoners. 
The surrender to the gunboats was unconditional, 
as we kept an open file upon the. enemy until their 
flag was struck. In half an hour after the surren¬ 
der, I handed tlie fort and prisoners over to Gen, 
Grant, commanding the army, on his arrival at the 
fort in force. 
After lighting most effectuallv tor two-thirds of 
the action, the Essex was obliged to drop down the 
river. I hear ihat several of her men were scalded 
to death, including the two pilots. She, with the 
other gunboats, officers and men, fought with the 
greatest gallantry. 
The Cincinnati received 31 shots, and had 1 man 
killed, and S wounded, 2 seriously. 
The fort, with 20 guns and 17 mortars, was 
defended by Gen. Tilghman with most determined 
gallantry. I will write as soon as possible. I have 
gent Lieut. Commanding Phillips, and three gun¬ 
boats, after the rebel gunboats. 
(Signed) A. II. Foote, Flag-Officer. 
The Cincinnati Gazette and Commercial’s Cairo 
correspondence ol the 7th, gives the’ following 
account of the bombardment and capture of Fort 
Henry: 
Yesterday, at 12:30 P. M., tho gunboats Cincinnati, 
St. Louis, Carondelet, Essex, Tyler, Conestoga und 
LexiBgton, bringing up the rear, advanced boldly 
against the rebel works, going to the right of 
Painter’s Creek Island, immediately above which, 
on the eastern shore of the river, stands the forlili- 
cutions—keeping out of range till at the head of the 
island, and within a mile of the enemy, passing the 
island in full view of the rebel guns. 
DepartmeiH of the East. 
An order has been issued to commanders of 
divisions in Virginia, directing all surplus baggage 
not actually needed for troops in the march to be 
sent here and warehoused. Another order has been 
issued to the surgeons in charge of hospitals in this 
city, to send the convalescent patients to Annapolis, 
and elsewhere to have ready as many spare beds as 
possible. 
A great deal of the sickness among our troops iB 
attributed by the surgeons to the negligence or 
ignorance of company officers in making requisi¬ 
tions for proper shoes and clothing for the men in 
the peculiarly disagreeable weather. There is an 
abundance of every article needed to make the 
soldiers comfortable, which can he obtained by the 
simple asking for it in a proper manner. 
So vast an army has been marshaled in this Dis¬ 
trict that no proper arrangements have been made 
for even a decent interment of those who die in our 
hospitals. Their bodies have often been buried in 
the nearest place of sepulture, where they have been 
promiscuously thrown together. Many relatives 
and friends have consequently made fruitless visits 
to the army of the Potomac to recover the dead 
bodies of their deceased friends. This sad state of 
things has arrested attention in Congress, and 
through the exertions of Mr. Dawes, a committee is 
aJ*4&5S 
