[continued from first page.] AYar Department, Washington, May 22, 1804.?To Major General Dte:?A despatch received this morning from Gen. Can by, dated May 14, at the mouth of the lied river, says:? ' We have rumors to-day from rebel sources that all the gunboats, except two, succeeded in getting over the falls at Alexandria on the day mentioned in General Hanks' des" Vnu-iv M StaKTAX. paitll. ?.?. , Secretary of War. Despatch to the Secretary of the Navy.?Washington, May 22, 1S64.? The following despatch lias been received by the Navy DepartmentHon. Gideon Welles, Secretary of the NavyHave just received a letter from Lieutenant Commander Breese, dated at the mouth of the Bank river, May 15. He writes as follows4' This morning a bearer of despatches lrom General Banks was re-; ceived at Fort De Russy, who says when he left one gunboat was coming over the falls, and it was currently believed that all would get over. He knew nothing more. I have information from a reliable ~ -1-4^j source that the dam nas oeen coiupieieu, and we may soon expect to hear that all ' the iron-clads are over.'' Information reached Secretary Wells, on the 22d, from Red river that one of (General Banks' gunboats was coming over the falls at Alexandria, and it was though they would all get safely over. It is said that the dam is completed, and if so, all the iron-clads may soon be re- j leased from the durance in which the low water has kept them. Later dis-1 patches from Gen. Canby say that ru- j mors were rife from rebel sources that 1 all the gunboatsexeept two were actually over the falls. An active campaign in Arkansas is in preparation. The rebel General Kirby Smith is at Camden, where, at last ac-1 counts, he was getting in all his scattered forces, and massing supplies, it was sup-1 posed with a view of attacking General Steele, at .Little -Rock. Smith had issued some bombastic proclamations to his soldiers, in one of which he announces the death of four rebel generals?Scum*, Randal, Mouton and Green. New York, May 2 2d.?The U. S. supply steamer Newbern, T. A. Harris commanding, has arrived at this port from the -North Atlantic Blockading Squadron. She brings 120 prisoners 1'rom the following blockade runners: steamers Tristam Shandy, Young Republic, and schooner Indian, captured off Wilmington. She report s that the rebel iron-clad North Carolina, which recently came a short distance over the Wilmington Iwr, was found upon her return to leak so badly as to compel them to run her ashore to avoid sinking, and upon the falling of the tide parted amidships from her own weight. The Raleigh, her cousort, is in progress of completion, but has not been considered bv them so formidable as the North Carolina. PEOPLE'S CONVENTION IN FLORIDA. We learn from the Peninsula that a Convention of the loyal citizens of Florida assembled at Jacksonville on the 24th. O. L. Robinson, Esq., of Jacksonville, presided. The following were chosen delegates to the Baltimore Convention : Buckingham Smith, of St. Augustine; John W. Price, of Jacksonville; C. L. Kobinson. of Jacksonville: John S. Samiuis, of Jacksonville; Philip Frazer, of Jacksonville; Pa ran Moody, of Jacksonville. The following were elected substitutes: Hon. David R. Dunham, of St. Augustine ; Charles Apple, of Fernaudina; Josepk-H. Remington, of Jacksonville; IikW "itta. of Jacksonville; C. Slager, ' of Silver Spring; #J. C. Snowball, of Jacksonville. Resolutions were adopted claiming a right to take part in the^Natioual Convention, ex greasing loyalty and soliciting the protection of the* government, and endorsing President Lincoln. An Executive Committee and one to memorialize the President were appointed. Sestexce for Df.9ertiox?In th6 eases of Privates Uenry C. Berry. CO. D, Gth Conn. Vols., and "Phiiip D.* Atkins. Co. F. 24th Mass. Vols., convicted of desertion, last winter, and sentenced to be slior. the Secretary ol War lias mitigated < , the penalties to imprisonment during the ! War at the Dry Tortugas. ARRIVAL OF DESERTERS FROM SAVANNAH. Three deserters from Savannah arrived i here yesterday. Tliev report that Gen. Johnson has* retreated before Sherman j and fallen back to within four miles of Atlanta, where he proposes to give battle. A contest Is expected there which will decide the fall of Georgia. Prize Money.?During the month of April the Fourth Auditor of the Treasury settled three thousand two hundred and ninety-nine claims tor prize money, amouuting to $.*?0?,933 70. The award has recently l>een made iu the case of the Atlanta, captured by the YVeehawken, Cimmarone and Naftant: (lne half the proceeds has been ordered , to be distributed, the captors having appealed to the Supreme Court their right to the remaining half, on the ground that the captured vessel was of superior force to the capturing vessels. Of this half the lirst-class firemen receive $338 80; ! second-class liremen. $444' 84; seamen, j $320 30; cdal-heavers, $320 30; ordi; nary seamen, 249 11: landsmen. $213 ">4; ! cooks, $427 04. j The Navy Department has received a communication from the United States I bark Ethan Allen, blockading otF Murt roll's Inlet, S. 0., reporting the destruo. I tiou of valuable salt works, information being given them by contrabands of the ; location of works, which were at a place j called Cane Pitch, twelve mileS from the inlet. Upon reaching the works an armed crew was sent ashore, who sue-' ceeded in destroying them and burning | the buildings. Extensive arrangements ' had lk?en made for extending the works to double their size. Tin; pans were of I cast-iron and easily broken. There were j four works, each containing twelve large I pans, the water being raised from the j beach by horse power, leading into a j cistern large enough to contain 100,000 ! gallons of water. The salt was mixed wltli I sand. "When returning to the station a ! man was taken oft' the coast who made , signals to the Ethan Allen. He gave j his name as Allen Jones. He said he was of North Carolina, and was a commissary sergeant in the rebel army. DUNBARS 4 FRANZ. No. 10 SUTLER'S ROW, | Respectfully inform their friend* that they hare | .iust received, by tbe schooner juiv tue ruurm, LARGE ASSORTMENT OF GOODS, Consisting of the following articles : i GROCERIES OF EVERY DESCRIPTION. J Gentlemen's and Ladies' Boots aud Shoes, Carpenters' Tools, -/ j Tin Ware. Cooking Stoves and Utensils, / Table Ware, Table and Pocket Cutlery, ' Sega is. Tobacco, Stationery, Suspenders, Gentlemen's Underclothing. Meats, Vegetables and Fruits, And various other articles. THE PALMETTO HERALD-A'JOURNAL or NOTABLE EVENTS IN Ttir DEPARTMENT OF THE SOTTH. j The first number of the above New-paper was published on the .Id'day of March, ISsVt. It will ! continue to be issued on THURSDAY ; qf each week, and will aim to be. In all things proper for publication, a tmthfnl record of what occurs in the Department of tbe South, and am nig the fleets of tbe South Atlantic lilockatling Squadron. Each issue will contain the LATEST NK>fS from the various Military Posts iu South CarDlina, Georgia and Florida, together with such j General and Special Orders from Headqtiartivs of the Department, or from the Adjutant Ueoej ral'B Office at Washington, as may interest the readers of this command. The gist of Northern I news, an given by onr Regular Correspondents at r,? Kor iw.intw ivflt ukin tcix, liurivii tiiiu um C ? [Official.] IlK.U>qr ARTEKh. pKIT. OF THE SorTH, Hilton Head, S. C.. May M, ISM. ; General Orders,) No. 74. ] By direction of the president, in Special Orders, No. 168. daled May :>th, laS?J4, [ j from Headquarters of the Army, the undersigned ! hereby assumes command of the Department ol > the South. .411 orders and regulations established by Brigadier-General Hatch, and now in operation, 1 I will remain in force until otherwise ordered. J. G. KoaTEK, Major-General Commanding. j Official r John F. A ndfrson, Major A A. P. C. [Official.] hfapqrafttrs. dkpt. of the soctu, Hii.to.n Head, s. c., May 27, 1S64. General Orders,) No. 76. / The following named officers are are hereby announced on the Staff of the .Major-General Commanding, and will be obeyed | I and respected accordingly j C'apL W. L. M. Burger, Assistant Adjutant i General. 1st Lieut T. J. Robinson, 21st r. S C. T., Act. Asst. Adjt Gen'l. Lt-C'oL B. T. Morgan, 64th N. Y. Vols.. Act. Asst. Insp. Gen'l. Capt J H. Moore, A. Q. M., U. S. Vols., Chief Quartermaster. Capt. T. A. P. Champliu, C. S., U. Si Vols., Chief Cora. Snb. Lt-Col. Peter Pineo, Medical In?i>ector. A'nrg. Eben. .s'wift, Medical Director. Mtrg. Charles L. Allen. Medical Purveyor. Major E. D Judd, Chief Puymaster. 1st Lieut. C. K. Auter, Engineer Corps, U. S. A., Chief Engineer. 1st Lieut J. R. McGinniss, C. S. A., Chief of Ordnance. Col. C. R. Braytou, 3d R. I. Art'y, Chief of Artillery? / Col. P. T. Brown, Jr., lSTtli, N. V. Vols., Provost Marshal Gen'l. Capt. H. R. Clum. Chief Signal o m-cr. j Col. M. ti. LiUlcllcld, 21*t I*. ?>'. 0. T., Gen1 I .Superintendent of the Recruiting Service for I Colored Troopn. C'apt, Lester Smith, 1st IT. S. Att'jr, ComatisI nary Musters. Major .Too. F. Anderson, A. D. C, Major E. X. Strong, A. i). C. ('apt, Geo. E. Gouraud, A. I). C. I Capt. Louis Fitzgerald, A. 1). C. Eu-Col. S. L. Woodford, 12?Lh X. Y? Vols., .tel. Judge advocate. * Act. Ensign, C. C. Nell, U. S. X., A, D. C? Chief of Arm'd Transports. Johu H. Mars, Esq.. Chief Marine Engineer. Bv Command ok Brio. Gri. J. G. FOSTER, W. L. M. Bcuoer. Assistant Adjutant Genera^ Official: Thomas J. Robinson, 1st. Lieut, .list U. S. C. T? Act. Asst. Adjt. General. I Official. | hrawjr artkrs. 1)?t. of tllk solth, Hilton IIkau, S. C., May SI, lstlU. Gfneral Ordlks. | Xo. 7l>. J BRIGADIER-GENERAL JNO. P. IIATCH. I". S. Vols., is hereby assigned to the comnuind of the District of lliltou Head, Fort Pulaski. St. Helena, and Tybee Island, llv Command OK Maj.-Gkn. J. G FOSTER, W. L. M. Bl !iOKK, Assistant Adjutant General. OrnoiAL; Thomas J. Rohinson, 1st Lieut. Slat U. 8. C. T.. Act, Asst. Adit General. The palmetto house. XC. 13 1-2MERCHANTS* ROW, BY MRS. H1GG1XS. Meals sened at all hours of the day, in the { best style, and a good supply of Meats. WgetI abl?*, Ac., always on hand. A' DVKUTINIXG.--WE CALL THE ATTE2*TIOX of business men throughout the Ditabtmfnt or thk Socth, To the fact that the palmetto ukrald ! Has a LARGE CTRCtXATION I At every Post, and is read in every regiment and detaebmeut in the bepaument. Our ADVERTISING TERMS. I (25 cents per line for each insertion; are very I i/??w .vwiutriiH' the size of our edition, and ihe j high prfws winch rule in till other departments ) of business To ADVERTISE LIBERALLY ; Is one of the most important means of success I in business of any kind, and tve know J , THE PALMETTO HERALD : To tie the BEST MEDIUM ; For advertisements in the Department. s. w. mason & co. Draft iiorse for sai.il-a large. powerful, well-trained draft horse for sale : on reasonable terms. I Inquire of Lieut. REEBE. Post Quartermaster, | Hilton Head. Morgan & ^iarsh, Na ii SiTi.EE8 Row, i Wholesale and Retail dealers In Groceries, Dry ] Gooda, and general assortment of sutlers Goods. M' I LI TAR Y AND NAVAL GOODS. -A Large Assortment of Army ami Navy Goods ! mav be found at the Military store, 11 Merchants' , Row. DOUGLAS & CO. | Ty*NBARS & FRANZ, 10 SUTLERS' ROW. xJ Dealers in Sutlers' Goods, Wholesale and. j Retail. _ . CN. BELLOWS. No. H SUTLERS' ROW. Dealer !a BOOTS, SHOES. CLOTHING, ' FURNISHING GOODS, and Sutlers' Goods of Every Description. Wholesale and Retail. PORT ROYAL HOUSE, UNION SQUARE. Hilton Head, 8. C. G1LSON Jt RIDDEM. > Propriety*. Notice to newsdealers, parties desiring copies :aw, IIiltom Buu, S. C1., May 12, 1GW. A NY SUBALTERN OFFICER, OR ENj.\ listed man. instructed in telegraph duties, desiring to be placed no such duty, will communicate direct to this oflb-e. L V SI2KLDON, Cap!, A. Q. M. and SnpL of Telegraphs Department of the Smth. ICE CREAM SALOON. The under* iirned rvsticciifuny informs the Pnblic that he has opened an lee Cream Saloon In C. W. DENNIS A CO. S BUILDING. ' No. 4 Mfjcchantk' Row. The very host of Oreanx by 'the Plate, Quart or' Gallon, ahvava On ILukL VK V. SKINNER. National pining saloon, omuir. i??t <* aei> noes*. WILLIAMS & MORRISON, PROPRIETORS. MeaLs furnished at all hurr* at reasonable prices. Tlw Tables supplied with the choice*! meats, pottltry, ejjgs, tisii. vegetables, Jtc.. for ohfatiiiin^ which we have the best facilities fron* the New York and other market*. CK. OSGOOD, JACKSONVILLE,. ? " Has on hand A Larhs, Fer.-si vni> WKJ.u-8Ktr<-rn> Stock of Ai.i. Ooom is ms Line?Dm Goons, G*oca-rifs. Boots ani? Si*?rs. FRESH SPRING A SI MMER 1)RR8SGOODS", PANCV GOODS, k Ciaan. Tohntew. Pipe*. .Stationery. Harfhvtre* j lr? Ac. : T^R- W. M. WALSH, PHYSICIAN A DRCGI I I ..I,., V'.. Nnu< II ilt. .M S I' i A full mtpplv of DRUGS. MKDK'INKS. < HtfMICALS, PERFUM FRIES, TOILETTE ARTICLES, i Hair, Tooth and Nail BrnSteH, Tooth Powder, j Ac., Ac., constantly ou halt..", i PURE SODA WATER, frtwn Sto\e Fol'staixs. with the CiNXcnr Starrs. Orders to the altov* addr?ss will twelve j prompt attention. PALMETTO HERALD JOB PRINTING OFFICE. ; Palmetto Herald Building, Merchants' Row. South of the Theater. All kinds of JOB PRINTING Neatly and | t ? he d jUe. S W MASON i CO