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February 26, 1863, The New York Herald

No movements have taken place in the Army of the Potomac. It is stated that the diminution in the rebel army at Fredericksburg is not so great as has been reported, although some troops have been sent to Charleston and some to Suffolk. Generals Lee and Jackson are still at Fredericksburg.

Despatches from Cairo state that a large fleet of gunboats left Memphis on Sunday, and proceeded down the river. One of our gunboats passed into Lake Providence, and found a band of rebels, with a large number of negroes, felling trees across the narrow passages to obstruct the passage of our boats. She shelled one company of them away.

Three thousand men are daily engaged in cutting the canal across the peninsula near Vicksburg. Our mortar boats are still in position and keep up an occasional fire on the batteries of the enemy. Despatches from Cairo dated yesterday say that nothing has been heard there of the Queen of the West or the Indianola. The steamer Belle of Memphis, while landing passengers on Monday night at a point thirty-six miles above Memphis, on the Arkansas side of the river, was boarded by a dozen guerillas, but she immediately backed out and the enemy were compelled to jump ashore.

We give today a most interesting account of the late sinking of the United States steamer Hatteras by the pirate Alabama, furnished by the officers and crew of the former vessel, who arrived here yesterday. From the facts detailed, it will be seen that it was a very gallant affair on the part of the Hatteras, and that, although destroyed, her officers and men, especially Captain Blake, the commander, had cheerfully staked their lives upon the encounter, and were prepared to brave the worst. But she did not go down without inflicting severe damage upon the Alabama. Sixteen balls perforated the Hatteras, shattering her sternpost and completely crippling her machinery just at the moment when she was about boarding the rebel vessel and was only twenty-five yards distant from her.

The Conscription bill of the Senate, which passed the House yesterday, includes in those liable to be drafted into the army to serve for the term of the existence of the rebellion, not, however, exceeding three years, congressmen, assemblymen, alderman, Quakers, clergymen, Indians and Negroes. It is, therefore, most sweeping in its provisions, and, if carried out, will leave but few homes in the North without a representative in the army. The amendments of the bill will turn over to the civil authorities all persons arrested by the Provost Marshals for treasonable practices.

A report reaches us from Boston that General Banks was fired at by some unknown person on the night of the 12th instant, as he was leaving the City Hotel at New Orleans to attend the French opera. The ball, however, did not take effect either upon the General or any one else; neither has there been any trace of the would-be assassin, nor has any news of this attempt upon the life of the Commanding General arrived here, although our dates from New Orleans are to the 13th.

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