DESPERATE FIGHTING IN AMERICA.

FEDERAL GENERAL GRANT DEFEATED BY LEE. DESTRUCTION OF THE CONFEDERATE FLEET OFF MOBILE. TREACHEROUS SURRENDER OF A CONFEDERATE FORT TO THE FEDERALS. GENERAL M'CLELLAN NOMINATED TO THE PRESIDENCY. 30,000 FEDERAL PRISONERS IN SOUTH CAROLINA. FATAL ORANGE RIOTS IN BELFAST.—SIXTY PERSONS KILLED AND 200 WOUNDED. FEARFUL HURRICANE IN ENGLAND.— IMMENSE DAMAGE. EARTAQUAKE AT ST. HELENA. ENGINEERS AND SAPPERS FOR NEW ZEALAND. VICTORIA CROSS FOR BRAVERY IN NEW ZEALAND. The I.E.M. Co.'s steamer Otago, Captain Smith, with the English mail, arrived here last night. The letters were landed by about eleven o'clock, and the rest of the mail when the steamer arrived at the wharf. She left Sydney Heads on Sunday afternoon and arrived here after a successful passage of four days and five hours. She cleared off from the wharf at Sydney about one hour after the arrival of the mail steamers from King George's Sound. The P. and O. steamer Madras arrived at the Sound on 7th inst. from Galle, which she lett on 19th Sept., and encountered strong south-east winds with a heavy sea throughout the passage. The following is the LATEST SPECIAL TELEG-EAM. London, Sept. 1, 1*55 p.m. Suez, Sept. 3, 235 p.m. LATEST AMERICAN NEWS. In America, Port Morgan, at Mobile Bay, still holds out. Beauregard has been dispatched with reinforcements for the Shenandoah valley. General Sheridan has been driven to Harper's Perry, with loss. General Sherman was thrice repulsed at Atlanta. The Confederate steamer Salahapee has destroyed fifty coasting vessels. Peace negotiations still continue. There is great excitement about the next Presidential election. LATEST EUROPEAN NEWS. DENMARK AND THE DUCHIES. Preliminaries of peace between Denmark and the German Powers have been signed. They relinquish the whole of the Duchies to the custody of Austria and Prussia, prior to the permanent arrangement. Denmark Ims made a full concession of all that was demanded of her, and the SschlewigHolstein war is therefore at au end. The preliminaries of peace have been decided on the following basis—Lauenbero-, Schleswig, snd Ilolstein are to be ceded to the two great German powers. The island of Arau is to remain with Denmark. Alsen, however, and the islands in the north sea are to go with Schleswig. On account of the Danish interests in Schleswig a rectification of the Jutland frontier will take place. Napoleon has gone to visit Prince Humbert at Chalons. The Geneva riots have been renewed. The Vienna Conference is progressing. Numerous arrests have taken place in the Venetian provinces, and large depots of arms have been discovered. The Queen inaugurated the Perth statue of the Prince Consort. The July trade returns are favorable. The wool sales closed languidly, with a decline on Sydney wools of Id., and Melbourne wools ot lid. Consols BSif. Discount unchanged. The Federation movement iv Canada ia progressing. A severe drought has been experienced in England during the harvest. Bank discounts had risen 8 per cent. GENERAL SUMMARY. London, August 26. The Australian June mails were delivered in London on the 14<th and 20th August. Her Majesty enjoys uninterrupted good health. The Prince and Princess of "Wales intend visiting Denmark, escorted by the Channel '. Fleet. 1 The Queen's speech in prorogation of ; Parliament, on the 29th July, dwells chiefly [ on the observance of strict neutrality between , the belligerents in America. Lord Palmerston is in excellent health > and increasing popularity. > Lord Carlisle, Viceroy of Ireland, has j retired through ill health." The vice-royalty P was offered to the Marquis of Lansdowne - and Duke of Devonshire, but both declined 1 to accept it; the appointment of Prince Alfred is suggested, and much discussed; s but The Times hints that the post has been c offered to Lord "Wodehouse. Sir Charles M'Carthy, Governor of Ceylon, S died in Belgium on the 14th August, Law- ° rence Oliphant is likely to be his successor. g It is expected that pensions to Governors :S of Colonies on retirement from public service c will be granted shortly by the Government, o It is said the Marquis of Westminster, Sir J| Charles "Wood, Mr. AVentworth Beaumont, U Sir "W. Bulkely, and Mr. Denison (Speaker) d are to be raised to the Peerage. Is A colossal statue of the late Prince »t Consort is to be inaugurated at Perth by the ® Queen, on the 30th August. n Several detachments of engineers, sappers, Qj and miners, are under embarkation orderß for New Zealand,

The Victoria Cross has been conferred on Lieutenant-Colonel J. C. M'Neill, and S. Mitchell, captain of the foretop of H. M. S. Harrier, for gallantry in New Zealand. On the Bth August the foundation stone of a monument to Daniel O'Connell was laid in Sackville-street, Dublin, amidst immense

enthusiasm. A general holiday was observed. Serious and disgraceful riots have taken place at Belfast between Protestants and Catholics, arising out of the O'Connell demonstration in Dublin. The town for twelve days was virtually in possession of furious mobs, numbering upwards of seventy thousand, who committed frightful excesses. Churches of different denominations were broken into and sacked. Vast numbers of houses were demolished, and black-mail levied for the purchase of ammunition. The Mayor and some of the magistrates left town during the riots. Sixty persons were killed, and two hundred received gunshot wounds. At last, with the assistance of 5000 troops, the constabulary, and special constables, the magistrates were enabled to quell this disgraceful sectarian disturbance. The Lord Lieutenant of the county, the Marquis of Donegal, severely censured the Mayor and magistrates for neglect of duty. A fearful hurricane, unequalled since 1838, raged over Great Britain and Ireland ; immense damage done. This storm was neither expected nor prognosticated by the Admiralty or chief of the meteorological department.

Excessive heat prevailed during the month and several lives were lost by sunstroke.

Seven miles of Woolmer Forest was destroyed by fire. An earthquake occurred at St. Helana on the 15th July, being the fourth during the last two centuries.

Preliminary arrangements are progressing for laying the Atlantic telegraph; also the Anglo-Australian line.

The detectives sent over to America to arrest Muller, the supposed murderer of Mr. Briggs in the railway carriage, have arrived in New York, and await his arrival per Victoria sailing ship. The great exodus emigration from Ireland is rapidly subsiding.

In the lelverton case the adverse decision of the Lords excited wide-spread sympathy for Mrs. Longworth. Proceedings have been commenced in Scotland to place Major Telverton on oath, as the result of this, notwithstanding the judgment of the Lords, will finally decide the question as to the Scottish marriage.

The Shakspere Memorial Fund is expected to be appropriated to the Dramatic College and Schools.

The Thames Champion Cup Prize is awarded to Cooper. The members of the Polish National Committee have been hanged at "Warsaw. This ends the rebellion.

The Prince of "Wales opposes the long services at Church, and makes a practice of not going to Church until the Litany commences.

The large premises of Thompson and Mackay at Hull, and some adjoining buildings, have been totally destroyed by fire. Damages estimated at £100,000. Ford, Curtis, and Curtis, ship provision merchants, London, have suspended payment—liabilities, £100,000. Mr. Kennedy, the barrister, has become a bankrupt from inability to pay the costs in the Swinfeu cause. Paul Bedford, the great " I believe you, my boy!" comedian, is also a bankrupt. The Liverpool committee have bought for Garibaldi, Lord Burleigh's yacht, the Osprey, 32 tons burthen.

The working of the new Act for closing refreshment houses between one and four in the morning has been very beneficial in the neighborhood of the Haymarket, London.

A mule and donkey show at,the Agricultural Exhibition is the latest London novelty.

The latest experiments at Shoeburyness have been of the greatest importance, and the power of the guns against wooden ships cased with iron is conclusive.

The inhabitants of Birmingham have completed the purchase of Aston Park for public recreation. The value of city property in London has increased so much of late that it is said £100,000 has been offered for the London Tavern.

Goodwood Races.—Steward's Cup, Marigold, 1; Argonaut, 2. Goodwood Stakes.— Blondin, 1; Guerilla, 2. Goodwood Cup. — Doltar, 1; East Lancashire, 2; Ranger, 3. Great Yorkshire Stakes.—Miner, 1; Blaii Athol, 2. It is a disputed race.

Obituatiy.—Major-General Brereton Cole, Colonel Hyslop, Major Biggs, Lord Rodney, Mr. F. Scully, Mr. Dyott, M.P., Mr. Bruce, Lady Ellerton, Miss Southey, Miss Sinclair, Mr.'Robson, the actor; Mr. C. "W. Dilke, Mr. George Offor, Mr. Sergeant Merewether, Vice-Admirals Marrier and Drake, and Mr. A. Hastie, M.P.