AMERICA.

Lyttelton Times, Volume XVI, Issue 945, 30 November 1861, Page 9 (Supplement)

AMERICA.

The commercial letters received by the last mail from New York, express, though in a guarded manner, weariness of the war, and desponding anticipations, whatever may be its determination.

Business generally was more active, but the existing- tariff, and doubts as to the possibility ot its being permanent, prevent merchants from entering into any transaction that cannot be wound up quickly, as the country can now pay for its .imports only by its supplies of grain. A conviction is stated by some of the most experienced financiers that, ii the l ar continues, all the banks will inevitably V.spend before next summer. The rate of exchange was very firm at 107f to 108, and there were very few drawers. Up to the 6th September, although the loan of £10,000,000 had been two or three weeks in the market, °nly £800,000 had been subscribed by the public. The main body of the two hostile ai'mies stand face to face along the line of the Potomac. General M'Lellan, the Federal commander, has effected considerable improvements m the discipline and organisation of the Northern troops, but he has not yet attempted a single offensive movement. He scarcely feels himself as yet sufficiently strong to hazard a repetition of that advance southwards which the North formerly clamoured

for so eagerly, and which resulted in the disaster of Bull's Run. With regard to the Secessionists, Beauregard, the southern leader had actually, it is affirmed, commenced a movement across the Potomac at the end or. August, for the purpose of cutting off the Federalists at Harper's Ferry from those at Washington, General M'Lellan, however* defeated that maneeuvre by promptly ordering the position at Harper's Ferry to be abandoned. As affairs standj therefore, on the Potomac, it appears that an engagement on a large scale may take place at any moment, though the Federal General shows no desire to force it. But President Lincoln has by no means been inactive. He recently fitted out a naval expedition with much secrecy and despatch, with a view of acting against those portions of the coast 3of the Southern States which harbour and protect the privateers. The expedition was directed in the first instance to the ports about Cape Hatterass, and it achieved a success which has raised the spirits of the Northerners not a little. The garrisons of the ports surrendered as prisoners of war ; and the forts and the munitions of war which they contained are now in the possession of the Federalists. But a more important and also a more perilous expedition is being fitted out in Missouri. A strong flotilla, earring rifled guns, will descend the streams from Missouri to Louisiana, while each bank is cleared of enemies by a formidable column of troops. If this expedition, which is to be aided, it is said, by another fighting its way up from New Orleans, should prove successful, the border states of the west, Missouri, Arkansas, and Louisiana, would be cut off from the Confederacy, and the great highway of the Mississipi would be under Federal command. This Mississipi expedition is to be entrusted to General Tremont, the commander of the Union forces in Missouri. Martial law is proclaimed in Missouri. Several Federal regiments have mutinied. Kentucky is expected to secede.