FEDERAL VICTORY IN KENTUCKY. ANOTHER FEDERAL SUCCESS.

Otago Daily Times, Issue 139, 26 April 1862, Page 3

FEDERAL VICTORY IN KENTUCKY.

ANOTHER FEDERAL SUCCESS.

New York, 23rd Jan., Evening. The Confederates have reserved a severs defeat at Somerset, Kentucky. A Lexington correspondent gives the following account of the battle :—"General Zollicoffer, learning that the Union forces had appeared in his rear, marched out ot his entrenchments at three o'clock on Sunday morning, and attacked General Sclioepf in in camp. The pickets were driven in at an early hour, and the attack was made before daylight. The battleis reported to have raged with great fury until three in the afternoon, when General Zollicoffer having been killed, the whole Confederate force flel in confusion to their camp. The loss is not stated, but is reported to be heavy." A telegram from Louisville of, the 20th, says : — -'The Confederates were in full retreat to their entrenchment at Mill Spring, with the Union troops in hot pursuit. (Jend-al Thomas followed up the rebels on Sunday to their entrenchments, sixteen miles from »iia own camp, and, when about to attack them he found their entrenchments deserted, the rebels having left all their cannon, quarter-master's stores, tents, horses, and -wagons, which fell into our hands. The rebels, dispersing, had crossed the Cumberland river opposite their encampment,atMill Spring. 275 rebels were killed and wounded, including Generals Zollicoffer. and Balie Peyton, who were found on the field. The 10th Indiana regiment lost 75 killed and wounded. Nothing further ot the Union loss has yet reached here." , " The New York press considers the victory at Somerset the most important advantage gained by the Federals since the commencement of the war. The Secretary of War had issued a general order from the War Department, acknowledging the bravery of the troops and promising rewards. ■ The reported preparations at Fortress Monroe to attack Norfolk 'were untrue. It is reported from the South that General Burnside's expedition had arrived in Pimlico Sound, and was about to attack Mewburn and Roanoake Islands. .The Confederates, it is reported, were ready to resist him The Commeivud Advertiser says the Confederates had abandoned tfort Pulaski. . Ex-President Tyler is dead. Th» Southern journals report that_ the steamer Gladiator, with a cargo of arms, had arrived at a port mThe"^miaittee of ways and means had reported to the House of Representatives the National Curacy and Loan Bill" which proposes to legalise as lawful tender in all money transactions of the country of the United States notes of emulation amounting to 150 000,000 dols including the 50,000,000 dols issued under the act of last July. This circulation, and all audited demands upon the treasury, are convertame into public stocks bearing 6 per cent interest and having 20 years to run. The bill also authorises the creation of funded 6 per cent stocks equal to 500,000,000 dols, which are to be used m payment ot the floating debt and for funding treasury votes. This supply is for the service of the year endwg June, 1862, and the ensuing year, ending June, lSbd. The stocks are to bear the uniform rate of 6 per oent, but may, wheir so aplliwl for, be expressed in the currency of any foreign state, and made payable abroad to the equivalent of their par value. The circulation natesU to be for 5 dots and upwards. The Secretary to the Treasury has sanctioned this The amount required for the navy during tie preeent fiaancwl year ia 48,500,000 doju,

. The City of Washington brings news from New York to the Bth instant. General lie-iuregwd was at Nashville. It was rumoured at Fortress Mnnroethat a riot had occurred at .Richmond, at whicn cric3 were raised for the [Jnion. The Senate had passed a Bill appropriating 10,000,000 dollars for the construction of iron gunboats. The Senate had also passed a bill authorising an additional issue of 10,030,000 dollars of demand notes, as a temporary relief, until the Treasury Note Bill can receive the ■ consideration of the Senate. The New York Times says that the Secretary of the Treasury had proposed to the banks to take from them their surplus demand notes upon ten days' notice, giving theni in exchange certificate deposits bearing 5 per cent, interest. The House of Representatives had passed the Treasury Note Bill, with the legal tender clause, by a large majority. The New York Chamber of Commerce had passed a resolution to the effect that no system of taxation bringing less than 150,000,000 dollars annually is adequate to meet the exigencies of the Federal (ioverninent. - . .. .

The Mno York Times considers the admission of the Sumter at Gibraltar as a gross wrong to America, and says :—" The rights of the Sumter under the proclamation oi neutrality were void after the burning of the vessels she had captured. No capture at sea is, according to international law, legal without the decision of a prize court. The Sumter was therefore a pirate."