batteries, with a notification that the city would be shelled in four hours if the demand was not complied with. Beauregard was on a reconnaissance, and General Jordan returned it for the signature of the writer. About 2 o'clock this morning the enemy began throwing shells into the city from a battery on the marsh between Morris and James Islands, and distant 5 miles from the city. Twelve 5-inch parrott shells fell in the city, but caused no casualties. The transaction is regarded as an outrage on civilized warfare. The shelling had a good effect in hastening the exodus of non-combatants. At daylight this morning, the enemy opened fire vigorously on Sumter. The Ironsides has since opened. Sumter is replying. Wagner is firing briskly on the enemy's advanced works, 450 yards from our battery.

Later, Charleston, August 22.-The fire of the enemy's land batteries has been kept up on Sumter, and more guns disabled. There was only one casualty. There was also a heavy fire on Battery Wagner from the fleet and land; also on Battery Gregg. The casualties at Wagner were 1 officer and 4 privates. General Gillmore's demand for the surrender of Fort Sumter and Morris Island, with the threat to shell Charleston in four hours from the delivery of the paper at Wagner, was signed and returned at 7 o'clock this morning. General Beauregard, in his reply, charges inhumanity and violation of the laws of war, and affirms that if the offense be repeated, he will employ stringent measures of retaliation. Up to this time, the threat to shell the city has not been executed.

Charleston, August 23.-On Saturday, 604 shots were fired at Sumter, of which 419 struck inside and outside. The east wall is much scaled and battered in, and the parapet undermined. The northwest wall, arches, &c., have fallen in. Guns were dismounted and 1 private killed. On Sunday, the land batteries opened from south to north, and the monitors from east to west coming close up. The fire south to north, and the monitors from east to west coming close up. The fire was very damaging. The east wall was cracked and breached, and the shot swept through the fort. A shell burst, wounding Lieutenant Boylston [seriously], Colonel Rhett, Captain Fleming, and Lieutenants Scanlan and Fickling. The fort is now a ruin. Colonel Rhett is ordered wounded. On Sunday, the brave Colonel Gaillard lost his life. It is said to-day that there are twenty-three vessels inside, including the Ironsides, monitors, &c., and thirteen outside the bar. General Gillmore sent a communication at 11 o'clock on Sunday, giving notice that at 11 o'clock to-morrow he would open fire on Charleston. In the meantime non-combatants can go out.

Chattanooga, August 22,noon.-A force of some strength appeared on the opposite side of the river yesterday about 10 o'clock, and commenced shelling the place without warning. Our batteries replied promptly, and the artillery duel continued until 5 p.m. A little girl, daughter of F. G. Roche, of Nashville, was mortally wounded; also one lady. The ferryman at the river was badly wounded. The enemy afterward retired. All quiet to-day.

EDWARD E. POTTER,

Chief of Staff.

WAR DEPARTMENT, Washington, August 25, 1863-4.35 p.m.

Major General U. S. GRANT, via Cairo:

Richmond dispatches just received state that Fort Sumter is in ruins, and General Gillmore had given notice that he would shell Charleston yesterday.

EDWIN M. STANTON,

Secretary of War.

[Same to Burnside, Dix, Meade, Pope, Rosecrans, and Schofield, and to William H. Seward.]

HEADQUARTERS DEPARTMENT OF THE SOUTH, In the Field, Morris Island, S. C., August 26, 1863.

His Excellency the GOVERNOR OF CONNECTICUT:

SIR: I have the honor to forward herewith a rebel flag captured by a soldier of the Sixth Connecticut Volunteers, in the action of