Ita,iira,—We have news from America to the 31st of August,
most of it favourable to the North. Mr. Russell reports that General McClellan is getting his men well in hand, and that the order and silence in Washington make a marked change in the aspect of the city. A severe discipline is enforced, and all persons writing intelligence from the army, which can directly or indirectly afford aid or information to the enemy, have been declared liable to the punish- ment of death, at the discretion of a court-martial. The men are being slowly brought into order, and the incompetent officers weeded out. General McClellan evidently excites confidence, and Mr. Russell reports the commissariat as excellent, and the means of carriage most unusually large. The works around Washington are also ap- proved. On the other hand, the Southern apcounts affirm that Mr. Davit has 300,000 men under his command, that he is moving into Maryland, and that he intends to attack the ca- pital from that side. An expedition has been despatched with a novel object, "It is destined for the destruction and closing of the extraordinary series of passages and inland waters in North Caro- lina, extending from Old Currituck Inlet down to Cape Lookout.
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Within a narrow belt of reefs and sandbanks lie Pamlico Sound, Albem le Sound—inland seas running into innumerable creeks, and reeeivi a system of rivers by which communication is opened to railmadli and towns far in the interior of the country. lam lurk the
privateers, which sally out through the openings of the outer bank and prey upon the passing trader ; and here the coasting vessels have been plying up and down with security. 150 small vessels laden with stones, conveyed by the United States ships of war, are on their way to block up the few passages by which these vessels can enter, and the men-of-war have also received orders to destroy the forts and defences which the rebels have occupied along the coast." All the ports will thus be gradually sealed up, and the blockade, which is already raising prices fearfully, made complete. All com- munication between North and South has also been out off, and the Government seizes all journals written in the North but expressing pro-Southern opinions. It also arrests all persons suspected of carrying passports, and a strict passport system has been established applicable to all persons arriving or leaving the Northern States by aea.
Intelligence from the West is not very clear, but it is reported that on the day following the departure of the mail, Colonel Fremont intended to issue a proclamation emancipating all slaves in Missouri, Kentucky is still wavering, but, according to the latest accounts, with a leaning towards the Southern side. A private letter gives a terrible picture of the state of affairs in Missouri: " St. Louis, Aug. 27.
" We have very troublesome times here at present. The city of St. Louis is under martial law, and a great many persons are con- tinually arrested for treason against the Government. There are about 60,000 troops here, and more are coming every day. They are fortifying St. Louis with large siege cannon and throwing up en- trenchments, working day and night. In addition to this, large wooden barracks are going to be erected to hold 50,000 soldiers. Since General Fremont has taken command of this military depart- ment business is conducted with despatch. " When this war is over Missouri will be one vast burying- ground. The Confederates have an army in this State of 70,000 troops. They have laid the country waste; farmers are driven from their homes because they are in favour of the Union; they have to flee for their lives, and leave everything behind at the mercy of the rebels. A great many of my friends were killed at the battle of Springfield, some in the -Federal army, others among the seces- sionists.
"Jefferson Davis and that arch-traitor Governor Jackson having found out that they cannot take Missouri out of the Union, are trying to lay the whole State waste with their army. The stores and pri- vate dwellings are stripped of everything by the rebels; they pretend to pay for it in State scrips issued by Jackson, which are not worth one cent. This is what secession has brought upon Missouri, once one of the most prosperous States in the Union."
Peace meetings seem to be frequent in some parts of New Eng- land, but they are as yet neither strong nor formidable, and the mob is bitterly hostile to peace papers. With respect to finance, it is observed that the ten millions stets ling lately supplied has been furnished by the banks of New York, Boston, and Philadelphia alone, and that the resources of the great body of the people are not yet touched. It is believed, and on good grounds, that the subscriptions to the open loan will be very large, and that., as in France, the savings of the country folk will be lent to Government.
The statement that Mr. Adams had expressed a belief that the British Government would recognize the Southern States, has been officially denied.
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