LATEST INTELLIGENCE.

Otago Daily Times, Issue 159, 20 May 1862, Page 5

LATEST INTELLIGENCE.

ADVANCE OF THE FEDERAL AItMY.

We have reported in a previous part of our columns several serious reversis sustained by the Confederates in Tennessee and Kentucky, but news has now reached us of more important operations in Eastern Virginia, tho field, upon which both sides agree that the real battle. is to be fought. Here for months back the main body of the Federals under General M'Clellan has beeu stationed opposite to the. flower of the Confederate troops, commanded, as is supposed,' by President Davis in person. A move haß now been made by .both armies. The Federal "army of the Potomac" commenced its long expected advancesouthwards on the 10th March. The Confederates about the same time broke up from their strong position at Manuasos, and retired in the direction' of Kicbmond, desolating the country and breaking down the bridges behind them. Whether they have withdrawn merely to what they consider a better position for giving battlej or whether they intend to avoid a battle as long as possible, cannot yet be conjectured. But so far as affairs have progressed, it appears that General M'Clellan's manoeuvres have been perfectly successful. He has done precisely what it was understood he had made up his mind to do. This will be perceived by a glance at the position of the contending forces. The Confederates. were posted with their left at Leesburg, ut the foot of the Kittoetnn Hill*, close by the banks of the Potomac, and with their right resting on the Lower Potomac, and the River Occoqnan, which ' joins the former. The-line thus occupied passed | from north-west in a south-easterly direction > through Centrcville and .in front of Manassas Gup , Junction". It formed the chord of a 'semi-circle traced by the Potomac, Washington occupying the centre of this arc, so that a line drawn at right angles to the chord must have passed through the capital. It was well known that the whole Confederate front was strengthened by elaborate works, whilst the left flank was protected by the Kittoetan range, and the right flank by the Potomac. To attack this position.in front would have been madness—to have attempted to turn cither flank directly would have been hazardous in the extreme. It waa necessary for M'Clellan to adopt some other plan in order'to dislodge the enemy. Now, parallel with the Kittoetan ridge, which runs from south to north, and at some 15 miles to the westward, runs the Blue Ridge, along the eastern bank of the Sbenandoah, which is pierced about 40 or 50. miles from the moULh of that river by Manassas Gap. Winchester, it may be observed, is » town which stands about 30 miles to the north-west of the Gap. and Martinsburgh is still 30 miles to the north-west of Winchester, near the bank? of the Potomac. It is obvious that if General M'Clellan could succeed in concentrating a sufficiently strong corps d'armcc on the Upper Potomac so as to cross that river—march up the Shenandoah— seize the Manassas Gap and the other passes of the Blue Ridge, he would be able to pass through the valley between that and the Kittoetan Hills, and so place himself in the rear of the Confederates. Here was an evident danger, and it had to be met by the Confederates. The size of M'Clellau's army was such that it was easy for him to detach 50,000 men, and thus to provide the means of carrying into effect the operations ayokisi the left flank and rear of the Confederates which have been indicated. The Confederate officers, apparently dreading this result, directed General Jackson to occupy Winchester with some 30,000 men, which he is said to have carefully fortilied. So long as the Confederates held this past, it would be impossible for the Federals to occupy the passes of the mountains. But the Federals were not to be daunted. General Banks crossed with his division, and occupied Martinsburgh as well as the banks of the Shenaudoah. It was evident that an attempt was about to be made to turn the Confederate left, and the question remained how it was to be met. As yet no account has been received of the retirement of General Jack- , son from Winchester. But an important movei ment has taken place to the eastward of the Kittoetan Hills, directly, in front of the Federal army of the Potomac. Leesburg, on the extreme left of the Confederates, has been abandoned, and indeed the whole line has been withdrawn. Manassas Gap Junction has been burned, and, according to rumor, the Confederates have retired to Gordonsville, a town ou tho Central Virginian Railway, some 60 miles to the south-west, co as to,cover Richmond. It may be doubted whether this rumor is will founded. But it appears to be certain thai the Confederates have, at least, so far withiira-.ru to. the South that they are in no immediate danger of having their flank turned by'an advance through Manassas Gap. The result is that the Federals . have advanced to a place called Cockpit Point, on the lower Potomac, and will now continue to advance until they succeed in bringing the enemy to an action.

The New York Times thinks tho abandonment of Manassas is a confession by the rebels that the war is ended.

President Lincoln, as Commander-in-Chief, had issued a War Order No. 1, saying that on the 22nd of March a general movement of the Federal Forces at Fort Munroe, and the forces on the Potomac and iv Western Virginia, shall take place, and that the naval force in the Gulf of Mexico shall be ready for movement on that day. The order directs Major-General M'Clellan, commanding the army of the Potomac, to proceed to organise that part of the army for active operations.

l"rom Tennessee we have but meagre accounts. In this region the Confederates have been thoroughly beaten. They seem to have been wholly unprepared for the vigour of Grant, Buell, and the rest of the. Western generals. The consei quence bus been the occupation, of Central Tennessee by a 'Federal army, and the retreat of the Confederates to the Southern limits of the State. Here, however, they arc said, to bo fprepariiig for

a stand. General BeaHregord is in command, and a place which is given in the-telegram as Chavenoon, but which is perhaps Gleteland or Chatwiioga,"is ' their "headquarters.—T-hese.-.places are almost on' the frontiers of Georgia, but it is probable thai' the Confederates will do all in their power to recover Temiesi-ee. ■ - 'She victory of general Curtis over tho Confederate gener'iis Price and M'Culloch.in Aikausus is confirmed. The loss on wish side was reported to exceed 10C0. . . COXI'i:DIi)!ATB SAVAIi VICTORY. As a contrast to its 'apparent, reverses on land, tho one hope, of the.'Cotifcderate navy, the Mcrimae, h«s just achieved a brilliant victory. _ This powerful'steitm frigate,- one of tho finefct in the Uuited States, was. abandoned and scuttled ut Norfolk when Virginia seceded ; but has since been raised and converted into an iron-plated steam, ram. ' For ' months her first e.«say I has been eagerly' 'expected by the South, and the talcs of ' her formidable power do' not seem to. • have been exaggerated. • The result of her first engagement is the complete destruction of two of the enemy's finest vessels, and so far as we cau judge from the despatch which has reached us from Northern sources, a remarkable testimony to the success of the principle .of the ram. The despatch to which we refer is dated New York, March 11, and is as follows :— The Confederate iron-chid steamship Merrimac and the Confederate steamers Yorktown and Jamestown left Norfolk ou the morning of the Bth March, and attacked the Federal sailing frigates Cumberland and Congress at the' mouth of James River. Fhe Merrimac received the broadsides ot , the Cumberland and Congress at 100 yards without sustaining any damage. The Merrimac then raii into the Cumberland with her iron prow, literally laying open her sides ; she then drew off, fired a broadside into tho Cumberland, and again , flashed at her, knocking in her side, and left her j to sink. . The Congress, which had kept up a bris^ engagement with the Yorktown anil the Jamtstowu, then sti uek her colors and surrendered. 1 The Federal-frigates Minnesota and St. Lawrence were,being towed to the assistance of the ■ Cumberland and the Congress, when the Minnesota got aground, and could render no assistance. During the following night the new Federal ironplated Ericsson steamer Monitor arrived at Fortress Monroe, and iv the morning was attacked by the Merriinac. These two vessels fought five hours, during which they nearly touched each other, the Monitor finally succeeding in forcing a hole in the port side of the Merrimac, which thereupon retired with' tho Confederate fleet to Norfolk. The Monitor was uninjured. The • Confederates set fire to the Congress a.nd blew her up. Fifty men are supposed to have been killed on board the Congress, Jiml 150 were killed and ■ wounded on beard the Cumberland. Nobody in tho Monitor was hurt. We learn that the Federal House of Representatives, by nearly three to one, has adopted the suggestion of President Lincoln to abolish slavery by purchasing the slaves. The Confederate House of Representatives has passed a resolution, by 71 to 77, recommending the military commanders to destroy all tobacco and cotton, to prevent their falling into the enemy's hands. The Senate at Washington has passed a bill that no Federal ofliecr or soldier shall return fugitive slaves.