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December 14th. Astounding intelligence reached us through a telegram to the Admiral, stating that Major General Banks, with his entire expedition, was on the river coming up to the city. The North Star came up to the lower part of the city and landed the General. General Banks comes to supersede Major General Butler in command of the Gulf Department, and will perhaps at this stage of affairs serve the interests of the Government better than Butler, who is much the harsher man, could. When General Butler first took charge of affairs here a strict, energetic man was needed,—one who would not hesitate an instant to punish severely the first act of insubordination. Butler was the man; but latterly this severity is uncalled for, and the public need a milder rule, and General Banks in my opinion is the better man for such.