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the rebels are retreating. Our loss is less than twenty killed and wounded. Gen. Banks defeated the rebels on the night of the 17th at Vermiltion bayou, about 60 miles west by south of Baton Rouge, driving them after a hard fight, taking over 1,000 prisoners--whole companies at a time. The rebels destroyed ten steamboats and two gunboats to prevent their falling into our hands. The steamer Corwin was captured. The rebel masteries at Bute is Rose had been reduced by our fleet. On the 14th the rebel works at Bethel Place were entered by Gen. Weitsal, and a large amount of stores, ammunition and arms left in them were captured. Gen. Grover had defected Gen. Dick Taylor, with two Texas regiments and three batteries, at Irick Bend, capturing same prisoners and over 1,000 head of beef horses, and mules. One hundred and seventy-nine wounded had arrived at New Orleans. One thousand six hundred rebels have been captured, and more are being taken — Franklin had been captured, a