[Inclosure]

AFFAIRS IN THE MOUNTAINS. - We have received a letter from a correspondent at London, Ky., under date of December 5. Our correspondent is a refuge from Huntsville, Tenn., and feels much interested in events which are occurring in that region. On the 7th of November a rebel of 1,100 men crossed the Cumberland Mountains, by way of Big Creek Gap. Arriving there, they separated into three detachments, one detachment going through Whitley County, by way of Boston, to Williamsburg; thence across Gilico Mountain, to Gilico Creek, and thence to Marsh Creek. From that point they marched across to Ponch Creek, Scott County, Tennessee, and quartered on the farm of Mr. J. Chitwood. On the route they stole 89 horses. Another detachment crossed the mountains about 18 miles above, in Scott County, and visited the residence of Dennis Tramel. The third detachment crossed still higher up,and proceeded up Smith Creek, burning the residence of Mr. Carwell Cross, stealing from him $690 in gold, and driving away 14 of his horses. On the 9th ultimo the same party burned the residence of Dennis Tramel, afterward going to James Chitwood's, at which point they joined one of the detachments from which they had previously separated. On the 10th they resumed their march toward Huntsville, burning houses,shooting stock, and committing other outrages on the way. Near the headwaters of Buffalo Creek the rebels encountered a number of Captain Duncan's Home Guards. A skirmish ensued, in which 4 of the rebels were killed and several wounded, the Home Guards sustaining no loss whatever. The rebels then retreated down Buffalo Creek, destroying and carrying off everything valuable that fell in their way. On the route they captured Larkin Cross and Ransom Conover, both of whom they hanged in the apple orchard belonging to the widow Angel. Mr. Cross was a good citizen, and the loss is severely felt. He leaves a wife and five interesting children. Mr. Conover belonged to the Second (loyal) Tennessee Infantry, and was ill at the time he was so cruelly murdered. He was highly esteemed by his neighbors, and leaves a wife and two children,wholly unprovided for. On the 11th ultimo the rascals recrossed the mountains,and made their way to Jacksborough. Our correspondent informs us that the rebels are committing many depredations in Whitley County, Kentucky.

NASHVILLE, TENN., December 15, 1862-1.10 p.m.

Major-General HALLECK:

Reports of last evening fully confirmed. Jeff. Davis attended John H. Morgan's wedding last night: was serenaded,and made a speech, in which he said Lincoln's proclamation put black and white on an equality. Urged them to fight until death, and to hold Middle Tennessee at all hazards, until Grant could be whipped. Bragg ordered all Kentucky and Tennessee exiles conscripted. Buckner, Breckinridge, and Hanson protested and threatened to resign. Jeff. took the matter in hand.

Things will be ripe soon.

W. S. ROSECRANS,

Major-General.

NASHVILLE, TENN., December 15, 1862-2 p.m.

Major-General HALLECK, General-in-Chief:

I have relieved General Hamilton from duty. He is very sick. His brother-in-law likely to die. They will leave for New York as soon as