On the 11th of January, 1863, about 3 P. M., as the Federal squadron, consisting of the steamers Brooklyn, Hatteras, and five others, was cruising off Galveston, a vessel hove in sight at the southeast, which the Hatteras was ordered to proceed to and learn her character. As she came in sight she appeared to the officers of the Hatteras to be endeavoring to escape. Just after dark the officers of the Hatteras could perceive that she was bark rigged, and set a topgallant sail; and, as they approached, found her lying to, under steam. The crew of the Hatteras were at quarters, and Capt. Blake hailed and asked what ship it was. The answer was, "Her Britannic Majesty's ship Spitfire." Capt. Blake replied that he would send a boat aboard. The Alabama ranged a little ahead, her officer declaring that she was the Confederate steamer Alabama, and immediately opened fire on the Hatteras It was returned by the Hatteras, and both started ahead under a full head of steam, exchanging broadsides as fast as they could load and fire,

The heavy guns of the Alabama soon disabled the Hatteras, so that it was impossible to keep her afloat. Two guns were fired to the leeward, the contest ceased, and the officers and crew of the Hatteras, which soon sunk, were taken to Kingston, Jamaica, and paroled.

The following were the principal officers of the Alabama: Captain, Raphael Semmes; First Lieutenant and Executive Officer, J. M. Kell; Second Lieutenant, R. T. Armstrong; Third Lieutenant, J. D. Wilson; Fourth Lieutenant, J. Low; Sailing Master, Arthur St. Clair; Surgeon, F. M. Galt; Assistant Surgeon, R. H. Lewelien; Lieutenant of Marines, B. K. Howell; Engineer, Michael Freeman; Paymaster, C. T. Young (since discharged); Midshipmen, Maffit (son of Capt. Maffit, of the Oreto), St. Clair, Bullock, and Anderson.

The diplomatic correspondence which took place between the Government of the United States and that of Great Britain, relative to these vessels, it may not be out of place here to notice, especially as the subject may at some period be again discussed between the two

nations.

On the 18th of February, 1862, Mr. Adams writes to Earl Russell that he had been informed of the preparation at Liverpool of an armed steamer, evidently intended for hostile operations on the ocean. In reply, Earl Russell stated that the commissioners of the customs at Liverpool reported that she was built for certain parties in Liverpool, and intended for the use of Thomas, Brothers, of Palermo, one of whom had frequently visited the vessel during the process of building; that she had taken nothing on board but coal and ballast; that she was not fitted for the reception of guns, nor were the builders aware that she was to be supplied with guns while she remained in England, and the collector at Liverpool stated that he had every reason to believe that the vessel was for the Italian Government-also that special direc

tions had been given to the officers at Liverpool to watch the movements of the vessel. Mr. Adams subsequently writes to Mr. Seward: "The nominal destination of the Oreto to Sicily is the only advantage which appears to have been derived from my attempt to procure the interference of the Government to stop her departure."

On the 25th of March Mr. Adams writes again to Earl Russell, enclosing a letter from the American Consul at Liverpool, stating certain facts relative to the Oreto. Mr. Adams says: "It is with great reluctance that I am driven to the conviction that the representations made to your lordship of the purposes and destination of that vessel were delusive, and that though at first it may have been intended for service in Sicily, yet that such an intention has been long since abandoned in fact, and the pretence has been held up only the better to conceal the true object of the parties engaged. That object is to make war on the United States. All the persons thus far known to be most connected with the undertaking are either directly employed by the insurgents in the United States of America, or residents of Great Britain, notoriously in sympathy with, and giving aid and comfort to them on this side of the water."

On the 8th of April Earl Russell replied to Mr. Adams, enclosing a report from the Lords Commissioners of her Majesty's Treasury, which states that the Oreto was registered on the 3d of March in the name of John Henry Thomas, of Liverpool, as sole owner; that she cleared on the following day for Palermo and Jamaica in ballast, but did not sail until the 22d, having a crew of fifty-two men, all British with the exception of three or four, one of whom was an American. She had no gunpowder, nor even a signal gun, and no colors save Marryatt's code of signals and a British ensign, nor any goods on board excepting the stores enumerated in an accompanying copy of her victualling bill.

On the 15th of April a conference took place between Mr. Adams and Earl Russell. Its close is thus stated by the former:

In the case of the Oreto, upon which I had addressed a note to him, he had directed an investigation to be made and the authorities at Liverpool had reported that there was no ground for doubting the legality of her voyage.

I replied that this was exactly what gave such unpleasant impressions to us in America. The Oreto, by the very paper furnished from the custom-house, was shown to be laden with a hundred and seventy board, destined for Palermo and Jamaica. The very tons of arms, and to have persons called troops on statement of the case was enough to show what was really intended. The fact of her true destination was notorious all over Liverpool. No commercial people were blind to it. And the course taken by her Maj inference most unfavorable to all idea of their neuesty's officers in declaring ignorance only led to an trality in the struggle. It was just such action as this that was making the difficulties of our Government in the way of giving the facilities to the supply if the whole control of means to put an end to the of cotton, which they hoped to furnish in a short time

contest was left to them.

The assertion of Mr. Adams relative to troops, &c., is not sustained by the copy of the paper from the custom house contained in the diplomatic correspondence. The only part referring to troops and guns is as follows: "Men, 52; passengers or troops, —;_guns, —; 178 tons." Again, on the 26th of June, Mr. Seward writes to Mr. Adams that a gunboat called the Oreto, built in England for the service of the insurgents, with ports and bolts for twenty guns, and other equipments, arrived at Nassau; and that the United States Consul, on the basis of the facts relative to her, made a protest upon the subject and she was seized by the authorities. She was, however, released soon after, on the arrival at Nassau of Capt. Semmes, late of the Sumter, and was about to start on a privateering cruise. This release by the authorities of Nassau, Mr. Seward was instructed by the President to protest against, as it seemed to be particularly at variance with her Majesty's proclamation of neutrality-and to ask the consideration of her Majesty's Government upon the proceeding as one calculated to alarm the Government and people of the United States. The subject was duly brought to the notice of Earl Russell, who, on the 29th of August, replied that the Oreto had been seized at Nassau, and was to be tried before the admiralty court for a breach of the foreign enlistment act. This was accompanied by the statements of the collector, surveyor and inspector of the port of Liverpool, and the affidavit of the pilot, that the vessel, when she went to sea, had no munitions of war in her, that is, guns, carriages, shot, shell, or powder.

No further reference is made to the Oreto in this correspondence, but the 290, or Alabama, is introduced as a more formidable object. On the 23d of June, Mr. Adams writes to Earl Russell, saying: "I am now under the painful necessity of apprising your lordship that a new and still more powerful war steamer is nearly ready for departure from the port of Liverpool on the same errand as the Oreto. This vessel has been built and launched from the dockyard of persons, one of whom is now sitting as a member of the House of Commons, and is fitting out for the especial and manifest object of carrying on hostilities by sea." Accompanying this was a letter from the United States Consul at Liverpool in confirmation of these and other statements.

The subject was immediately referred to the Lords Commissioners of her Majesty's treasury, who, on the 1st of July, report that the fitting out of the vessel had not escaped the notice of the revenue officers, but that as yet nothing had transpired concerning her which had appeared to demand a special report. The vessel was intended for a ship of war, reported to be built for a foreign government, but as yet had

neither guns nor carriages on board, and the builders did not appear disposed to reply to any questions respecting the destination of the vessel after she left Liverpool. Their solicitor, however, reported his opinion that there was not at that time sufficient ground to warrant the detention of the vessel, or any interference by the department. The Consul at Liverpool was then instructed by Mr. Adams to lay his evidence before the Commissioners. At the same time, he called Capt. Craven, in command of the U. S. gunboat Tuscarora, to Southampton. To Capt. Craven was given all the information respecting the objects and destination of the 290 in possession of Mr. Adams, who advised him to take such measures as might in his opinion be effective to intercept her on her way out. Meanwhile evidence was procured of the character and objects of the vessel by the U. S. Consul at Liverpool, which, in the opinion of a Queen's solicitor, was sufficient to justify the collector of the port in seizing the vessel, and laid before the commissioners. While the subject was under their consideration the 290 sailed from Liverpool, without register or clearance. The captain of the Tuscarora was immediately notified by Mr. Adams and he started in pursuit. Earl Russell, in a conference with Mr. Adams, stated that a delay in determining upon the case had most unexpectedly been caused by the sudden development of a malady of the Queen's advocate, Sir John D. Harding, totally incapacitating him for the transaction of business. This had made it necessary to call in other parties, whose opinion had been at last given for the detention of the gunboat, but before the order got to Liverpool the vessel was gone. He should however send directions to have her seized if she went, as was probable, to Nassau.

On the 30th of Sept. Mr. Adams wrote to Earl Russell, relating the injuries done by the 290 or Alabama, saying, "I have strong reasons to believe that still other enterprises of the same kind are in progress in the ports of Great Britain at this time. Indeed they have attained so much notoriety, as to be openly announced in the newspapers of Liverpool and London." Earl Russell, acknowledging the letter, in reply said: "I have to state to you that, much as her Majesty's Government desire to prevent such occurrences, they are unable to go beyond the law, municipal and international.

On the 16th of October Mr. Adams writes home to Mr. Seward that, "It is very manifest that no disposition exists here to apply the powers of the Government to the investigation of the acts complained of, flagrant as they are, or to the prosecution of the offenders. The main object must now be to make a record which may be of use at some future day."

Among the papers laid before Earl Russell by Mr. Adams was an affidavit of a person who sailed from Liverpool in the 290, stating that arms were furnished to her in or near Augra Bay, part of the Azores. To which Earl Russell replies that the transaction does not appear

to have taken place in any part of the United Kingdom, or of her Majesty's dominions, but in part of the Portuguese dominions. No offence, therefore, cognizable by the laws of the country, appears to have been committed by the parties engaged in the transaction. Respecting a statement in a letter of the American consul at Liverpool, that a bark was to take out a cargo of coals, either from Cardiff or Troon,

near Greenock, for the 290, Earl Russell replies that "there would be great difficulty in ascertaining the intention of any parties making such a shipment, and we do not apprehend that our officers would have any power of interfering with it, were the coals cleared outward for some foreign port in compliance with the law." No further correspondence relative to the 290 and the Oreto took place during 1862.

EARLY in June the guerrilla operations became troublesome in some of the lower counties of Kentucky. At Madisonville, in Hopkins county, a descent was made by a small body of them at night. The county clerk's office was broken open and the records of the court carried off or destroyed. In other cases horses and other property were taken. Their own friends, equally with Union citizens, were robbed. In Jessamine, Mercer, Boyle, and Garrard counties bridges over the streams were burned. On the 5th of July Lebanon was taken. It is at the termination of the Lebanon branch of the Louisville and Nashville road. About the same time Murfreesborough in Tennessee was captured by a strong guerrilla force under Col. Forrest. Vigorous opposition was however made by the small body of Federal troops stationed there. The 9th Michigan regiment was captured entirely by surprise, with Brig.-Generals Duffield and Crittenden, of Indiana. On the 18th of July an attack was made by Col. John Morgan on a small Federal force stationed at Cynthiana, Ky. Subsequently he was overtaken near Paris by Gen. Green C. Smith and defeated. About the same time Henderson was occupied by citizens of Kentucky and other States, acting the part of guerrillas, and the hospital and other stores carried off. At the same time Newburg, in Indiana, on the Ohio River, was occupied by a band from Kentucky. They soon, however, left. The activity of the bands under Col. Morgan produced a great excitement in the interior of the State. Many towns were visited and much plunder obtained. It had been his conviction that large numbers of the citizens would flock to his standard. In this he was greatly mistaken, and the indifference and hostility of the people, together with the preparations to resist him, checked his movements. Active operations continued in Tennessee, whither Col. Morgan retired. Clarksville was captured with its military stores.

The increase of guerrilla operations in Kentucky about the 1st of September, with the

manifestations of the existence of a Confederate force, indicated some hostile movements. It was soon known that the Confederate general E. Kirby Smith was approaching from Knoxville in Tennessee. On the 22d of August he left Jacksborough with a train of one hundred and fifty wagons, and passed through Big Creek Gap. So difficult were some parts of the route in Tennessee that for two or three days the rear of the trains was only able to reach at night the point from which the advance started in the morning. Rations failed, and the men were obliged for several days to subsist on green corn. Hungry, thirsty, footsore, and choking with dust, his men marched steadily on to a land of plenty. The ordnance stores were brought safely through without the loss of a wagon. On Saturday, August 30, a battle took place between his forces and a Federal force near Richmond, Ky., in which the latter were defeated. Richmond is the capital of Madison County, situated about fifty miles south-southeast of Frankfort, the capital of the State. The Federal force there consisted of one Ohio regiment and five Indiana regiments and part of a sixth, two Kentucky regi ments, all raw troops, and a squadron of Kentucky cavalry, under the command of Brig.Gens. Mahlon D. Manson and Crufts, with nine field pieces. It made an attack upon this Confederate column under Gen. Smith at Rogersville about four miles from Richmond, and after a severe battle, continuing from six o'clock in the morning until night, it was entirely defeated, with a large number killed and wounded and with the loss of eight field pieces. Gen. Nelson, who had come from Lexington, arrived at the commencement of the retreat, and endeavored to rally the troops, was wounded and obliged to retire. At that time the Legislature of the State was in session, and it met on Sunday evening, and passed resolutions adjourning to Louisville, &c. The archives of the State and about one million of treasure from the banks of Richmond, Lexington, and Frankfort were transferred during the night to Louisville.

FRANKFORT, KY., August 31, 1862 To the People of Kentucky: A crisis has arisen in the history of the commonwealth which demands of every loyal citizen of Kentucky prompt and efficient action. The State has been invaded by an insolent foe, her honor insulted, her peace disturbed, and her integrity imperilled. The small but gallant army, raised upon the emergency of the occasion for her defence, under the brave and chiv. alric Nelson, has met with a temporary reverse, and the enemy is advancing for the accomplishment of his purpose-the subjugation of the State. He must be met and driven from our border, and it is in your power to do so. I, therefore, as Governor of the Commonwealth, deem it my duty to call upon every loyal citizen of Kentucky to rally to the defence of the State; not a moment is to be lost. I appeal to you as Kentuckians, as worthy sons of those who rescued the dark and bloody ground from savage barbarity, by the memories of the past of your history, and by the future of your fame, if you are but true to yourselves, to rise in the majesty of your strength and drive the insolent invader of your soil from your midst. Now is the time for Kentuckians to defend themselves. Each man must constitute himself a soldier, arm himself as best he can, and meet the foe at every step of his advance. The day and the hour, the safety of your homes and firesides, patriotism and duty, alike demand that you rush to the rescue. I call upon the people, then, to rise up as one man, and strike a blow for the defence of their native land, their property, and their homes. Rally to the standard, wherever it may be nearest, place yourselves under the commanders, obey orders, trust to your own right arm and the God of battle, and the foe will be driven back, discomfited and annihilated. To arms! to arms!! and never lay them down till the Stars and Stripes float in triumph throughout Kentucky. I but perform my duty in thus summon ing you to the defence of your State, and I am assured that it will be promptly responded to. I promise that I will share with you the glory of the triumph which surely awaits you.

Done in the city of Frankfort, this 31st day of August, 1862.

(Signed)

By the Governor,

JAMES F. ROBINSON.

D. C. WICKLIFFE, Secretary of State. On the 2d the Confederate advance guard entered Lexington. All the Government stores had been previously safely removed. The stock of horses and mules had also been sent off, and all the cars withdrawn from the railroad.

In explanation of the object of the invasion, Gen. Smith issued the following proclamation: KENTUCKIANS: The army of the Confederate States has again entered your territory under my command.

Let no one make you believe we come as invaders, to coerce your will, or to exercise control over your soil. Far from it. The principle we maintain is, that government derives its just powers from the consent of the governed.

I shall enforce the strictest discipline, in order that the property of citizens and non-combatants may be protected. I shall be compelled to procure subsistence for my troops among you, and this shall be paid for.

Kentuckians: We come not as invaders, but liberators. We invoke the spirit of your resolutions of 1798. We come to arouse you from the lethargy which enshrouds your free thought, and forebodes the

political death of your State.

We come to test the truth of what we believe to be a foul aspersion, that Kentuckians willingly join the attempt to subjugate us, and to deprive us of our property, our liberty, and our dearest rights.

We come to strike off the chains which are riveted upon you. We call upon you to unite your arms, and

plains the Northern hordes who would deprive us of our liberty, that they may enjoy our substance. Are we deceived? Can you treat us as enemies? Our hearts answer NO! E. KIRBY SMITH, Major-General C. S. A.

On the 6th Frankfort, the capital of the State, was quietly occupied by about fifteen hundred Confederate cavalry. The government of the city was reorganized, and recruiting stations opened. The guerilla force, under Col. Morgan, also joined Gen. Smith.

Meanwhile, on the first approach of the Confederate force toward Lexington, excitement commenced in Cincinnati, and preparations for defence began to be made. Gen. Lewis Wallace took command of Cincinnati, Covington, and Newport on the 1st of September. Martial law was declared, and on the next day all places of business in Cincinnati were ordered to be closed at nine o'clock in the morning, and the citizens were required to assemble at ten o'clock and organize for defence. The street railroad cars were stopped, and no male citizen was allowed to leave. Preparations to throw up intrenchments and to fortify the city were immediately commenced. This excitement extended into the interior of the State and into the adjoining State of Indiana. The governor of Ohio issued the following proclamation:

CINCINNATI, September 2, 1862.

To the Loyal People of the River Counties: Our southern border is threatened with invasion. I have, therefore, to recommend that all the loyal men of your counties at once form themselves into military companies and regiments to beat back the enemy at any and all points he may attempt to invade our State. Gather up all the arms in the country, and furnish yourselves with ammunition for the same. The service will be of but few days' duration. The soil of Ohio must not be invaded by the enemies of our glorious Government. DAVID TOD, Governor.

About the 10th of June Gen. Buell left Corinth with the main body of his army for Chattanooga. On reaching Huntsville he appointed Gen. Rousseau to command the division of his army previously under Gen. Mitchell, and completely reorganized the state of affairs in that part of his department. Depredations by soldiers were stopped, discipline restored, and order established. His army then took positions at Battle Creek, Huntsville, and McMinnville. At the same time the Confederate general Bragg massed his army at Chattanooga and Knoxville. This was done by suddenly moving his force from Tupello, in Mississippi, through the States of Alabama and Georgia, and thus reaching Chattanooga in advance of Gen. Buell. It was divided into three corps under Maj.-Gens. Wm. J. Hardee, Leonidas Polk, and E. Kirby Smith, each of which numbered about fifteen thousand men. The two former of these officers had

been at Corinth, and their forces consisted of some of the troops which evacuated that place, increased by new levies under the conscription law. The division of Gen. Smith was stationed at Knoxville, where it safely remained while Chattanooga was occupied by the corps of

Gens. Hardee and Polk. Gen. Smith moving from Knoxville succeeded in flanking the Federal general G. W. Morgan, and with no battle of any consequence, except at Tazewell, effected the design of getting into his rear, and thence advanced into Kentucky as above stated. The next movement was made by the other two corps, for the purpose of forming a junction with Gen. Smith after he had reached Lexington. Accordingly, on the 21st of August, Gen. Bragg crossed the Tennessee river at Harrison, a few miles above Chattanooga, and turning the left of Gen. Buell he marched westward by the mountain road to Dunlap, which he reached on the 27th. His force then consisted of five regiments of cavalry, thirty-six of infantry, with forty pieces of field artillery. Thence he moved up the Sequatchie Valley, and reached Pikeville on the 30th. On the same day he threw a large force forward toward McMinnville, the capital of Warren county, Tennessee, and seventy-five miles southeast of Nashville. The Confederate cavalry advanced far toward McMinnville, and one or two smart skirmishes took place with the Federal cavalry thrown forward from that point. In the mean time the rest of the Confederate army moved northeast toward Crossville, and on the 1st of September reached the mountains at that place, having ascended the Grassy Cave road, while the force thrown toward McMinnville was suddenly withdrawn, and followed the main army. On the 5th of September this Confederate force entered Kentucky, and moved on toward Bowling Green. On the 13th of September an advance of this force appeared before Munfordsville, at the crossing of the Louisville and Nashville railroad, over Green river, and demanded its surrender. Col. Wilder then in command refused, and early on the next morning an attack was made by the Confederate force, under Gen. Duncan, who after a struggle of seven hours was repulsed. The force at Munfordsville, which had been stationed there for the protection of the bridge, consisted of three thousand one hundred infantry with four pieces of artillery. The Federal loss was eight killed and twenty wounded. The Confederate loss was larger. The attack was renewed again on the 16th with great spirit, and on the next day the place was surrendered by Col. C. L. Dunham, who had arrived with his regiment, and then had command. The troops surrendered consisted of the 17th, 60th, 67th, 68th, 69th Indiana, a company of Louisville cavalry, a part of the 4th Ohio, and a section of the 13th Indiana battery; amounting in all to about four thousand five hundred men, and ten guns. The bridge over the Green river was burned at this time.

During this period Gen. Buell had not been idle. While on the Tennessee river, near Chattanooga, his army was dependent on Louisville as its base for the supply of provisions and munitions. To render this available it was necessary to protect over three hundred miles of