Washington Telegraph

Correspondence of the Picayune

FROM GEN. TAYLOR'S ARMY.

Monterey, June 1, 1847.

Although we cannot advance upon San Luis, it is thought there may be some skirmishing on the road from here to Camargo, Urrea having again plucked up courage, become tired of musterly inactivity, and being now at the head of a large force of lancers. It had been reported that he was at Tula but the report was not credited; but I was yesterday informed at headquarters that positive information had been received that Urrea was at the head of 4000 cavalry this side of Victoria. It is probable that the force is over estimated. If the gentleman should show himself I suspect the old general will make another push to take him. A few days ago he might have made a very pretty little speculation, as a large amount of specie was brought up.

Talking of specie, an American who has been doing business at Zacatecas for some years, arrived here a few days ago with $160,000 in Mexican dollars of this year's coinage. He converted his property into hard cash and succeeded in smuggling it out of the country. Here he obtained a draft on New Orleans from Paymaster Hunter.

I wrote you on the 30th ult. and in my letter stated that Col. Hays was on his way hither with a full regiment of Texas Rangers, but upon inquiry it turns out that he only has five companies of the same regiment that Henry McCulloch came out with, and as they were enlisted for six months only and came out under Col. Curtis's 50,000 call, of course he cannot be received. The Missouri volunteers did not succeed in forming the company of cavalry they expected, the sound of home being too sweet. They had the positive assurance of Gen. Taylor that he would gladly receive as many as were disposed to reenlist, but they backed out. There may be two companies raised out of the Arkansas cavalry, but I very much doubt whether it can be done.

Four companies of the first battalion Virginia volunteers marched into town from China this morning. Capt. Bankhead's company being left behind to take care of a few sick, to rejoin the regiment as soon as possible. Lieut. Mahan, who was shot in the duel which I mentioned in my last, was still alive but no hopes entertained of his recovery. A short time since a party of about thirty armed Mexicans were brought in by a company of Virginians, and after undergoing an examination were disarmed and released, the alcalde giving security that they should not again be found under arms. There are about 130 of the regiment on the sick list, but there are few of them dangerously ill. About twenty of them are to be discharged and will go home under charge of Lieuts. Allen and Pegram, who go home on recruiting service. A volunteer named Daniel Harmon, of Captain Preston's company, Virginia volunteers, died day before yesterday.

The abandonment of the San Luis expedition on account of the withdrawal of the troops, is still the topic of conversation and a cause of universal regret. I believe Gen. Taylor freely admits the necessity of Gen. Scott's having more troops and speedily, and can only regret that a sufficient number of troops have not been forwarded. Now from the very commencement of the campaign the troops have been sent out in driblets and operations of a vigorous character prevented from this cause. Well, we shall see what we shall see. The impression seems to prevail here to some extent that Mexico is disposed for peace. It all grows out of the statement in N. O. Delta, that the British Minister had received an application for mediation on the part of his Government from the Mexican Government. There is no news at all here.

J. E. D.