The Latest News.
NEW YORK, Sept. 2. — The Herald's correspondent with the army of the Potomac, has the following:
The canal at Dutch Gap will soon be in readiness for use.
The 1st New York mounted volunteers is re-enlisting for three years more.
A mysterious looking, and to all appearances formidable craft, has been discovered lying in one of the creeks emptying into the James. She appears to be waiting for some of the monitors to pass up the James, when she will run out and cut off retreat.
The rebels are erecting batteries to command our position at Dutch Gap.
The rank and file of the rebel army being generally under the impression that if they desert they will be placed in the front ranks, Gen. Grant has issued an order that those who come voluntarily within our lines, shall have transportation to their homes, if within our lines, or to any point north they may choose. This order is to be circulated in the enemy's camp.
The Herald's Mobile correspondent says:
On the morning of the 23d, Capt. Taylor, bearing a white flag, accompanied by 40 men, marched out of Fort Morgan, carrying a small sail boat, with the intention of going to the flag-ship, three or four miles distant, with a note from Gen. Paige, proposing to surrender.
A check was put upon this by Gen. Bailey, who said his artillery commanded Fort Morgan, and his infantry every foot of Mobile Point, outside the fort; he would not permit a boat's crew to pass off from the shore on any pretence whatever. Soon after, Gen. Granger arrived, and the note to Admiral Farragut was taken by him, saying he would communicate its contents to the admiral.
In a short time the demand for unconditional surrender was made and granted.
The results of the victory at Mobile, may be summed up thus: Compelled the evacuation of Fort Powell; the surrender of Fort Gaines; almost destroyed, and compelled the surrender of Fort Morgan, heretofore considered the strongest fortification in the United States. We have taken 1,500 prisoners, 100 pieces of cannon, and a vast quantity of small arms and munitions of war; also provisions enough to feed the garrisons we shall place there for six months. We have captured and have ready for use the ran Tennessee, the strongest war vessel afloat; also several other war vessels, and have penned up at least three English blockade runners. All this cost the army was one man killed and six wounded — and the navy, the loss of the Tecumseh, and a part of her crew, and but very few casualties on the other ships.
The Herald's Washington special says the 8th Illinois cavalry have just returned from a scout to Mappirville, Ashby's Gap and Snicker's Gap. They had orders from Sheridan to arrest all able-bodied men between 18 and 50. Accordingly, 32 such men were brought in, including a few of Mosby's men. The party destroyed 7,000 pounds of wool, and captured 1,000 pounds of cotton yarn. They also received thirty-five horses, some of which belong to Mosby's men. They could not get a fight out of Mosby, although he is reported to have 600 men and six pieces of artillery.
WASHINGTON, Sept. 2. — The last information from the army of the Potomac is that all was quiet yesterday. A number of shells have been thrown into Petersburg from the monitors' fifteen inch mortars, to deter the rebels from firing on our pickets, and seems to have the desired effect.
The navy department has received official dispatches from Farragut. It appears that the rebel Gen. Paige endeavored to obtain more favorable terms, but was obliged to surrender Fort Morgan unconditionally. Farragut states that he has reason to believe that most of the guns were spiked and the gun carriages wantonly injured after the white flag had been raised. It is also discovered that Gen. Paige and several of his officers had no swords to deliver, and several were broken that were surrendered.
The following is the concluding portion of Admiral Farragut's official dispatch to the navy department:
The whole conduct of the officers of Forts Gaines and Morgan presents such a striking contrast in moral principle that I cannot fail to remark upon it. Col. Anderson, who commanded the former, finding himself encumbered with a superfluous number of conscripts, many of whom were mere boys, determined to surrender a fort which he could not defend, and in this determination was supported by all his officers, save one. But from the moment he hoisted the white flag, he scrupulously kept everything intact, and in that condition delivered it over, whilst Paige and his officers destroyed the guns which they said they would defend to the last, but which they never defended at all, and threw away or broke those weapons which they had not the manliness to use against their enemies. Fort Morgan never fired a gun after the commencement of the bombardment.
The ceremony of surrender took place at 2 p.m., and on that same afternoon all the garrison were sent to New Orleans in the United States steamers Tennessee and Bienville, where they arrived safely.
Very respectfully yours,
D. G. FARRAGUT, R.A.G.
Hon. G. Welles, Secretary of the Navy.