From Washington

WASHINGTON, Feb. 17.

In the Senate Mr. Wilson gave notice that he would introduce a bill, authorizing the President to distribute prizes among the soldiers of the United States, who shall distinguish themselves in battle.

It is said that Russell, of the London Times, was surprised at the reply to his cards, “that Secretary Stanton was too much engaged to see him.”

The announcements of the capture of Fort Donelson, and the impending capture of Savannah, were received by both houses with the wildest enthusiasm.

The reference of Senator Harris’ provisional government bill to the territorial instead of the judiciary committee, against Garrett Davis’ opposition, indicates the temper of the Senate to adopt a radical bill for the government of rebel territory as fast as conquered.

The bills which the territorial committees of both houses have nearly matured, differ from Harris’ bill substantially, a copy of which they have already rejected, in being more thorough and meaning subjugation more decidedly.  Their bill will be reported in a few days.

There are said to be frauds connected with the fitting out of the Butler expedition at Boston, which Washburn’s committee are about to go there and investigate.

Tribune Correspondence.

WASHINGTON, Feb. 17.

The committee of ways and means, in a protracted session this a. m., debated and voted upon the several amendments made by the Senate to the first two sections of the legal tender bill.

Messrs. Corning, Morrill, Horton, and Stratton, voted throughout to concur in all the changes of  principle.

Messrs. Stevens, Spaulding, Hooper and Maynard, adhered to all the distinctive features of the bill, as passed by the House; the vote thus standing 4 to 4.

These amendments of the Senate were not concurred in, which make the issue of new notes one hundred million instead of one hundred and fifty million, which included the fifty million authorized July 17th, requiring that the interest on the bonds and notes be paid in coin, make the twenty year bonds redeemable after five years, authorized the conversion of notes in sums not less than one hundred dollars into 7 3-10 bonds, make the funded six per cents redeemable after five years and payable in twenty years instead of redeemable after twenty years, as the house directed, and authorize the throwing of the bonds on the market for what they will fetch.  Numerous letters were read to the committee by Mr. Stevens advising the passage of the legal tender bill without the specie interest clause, and resolutions to that effect were received from the Chambers of Commerce in Louisville, St. Louis, Chicago, Cincinnati and Milwaukee.  Mr. Washburne, who has just arrived from Illinois, represented the demand for the bill as universal and impatient.

It is reported to-night, upon the authority of a telegram from Gen. Banks, that Mr. Faulkner has, within a day or two, made a speech at Martinsburg, in which he expressed the opinion that the rebellion was a failure, and advised his hearers to make the best terms possible for themselves with the United States.

The House military committee are considering a bill to enlarge the Michigan and Chicago canal to the capacity for ships.  It heard to-day a delegation from Illinois who named their plans for the improvement, including the deepening of the Illinois river to the Mississippi through which the canal and river pass.  They have agreed to surrender their property and jurisdiction to the Government for a while, and to receive the tolls in payment for the interest on the investment.  Mr. Blair, chairman, has been authorized to report a bill for the work.

660 sailors, volunteers from the Massachusetts and Maine regiments, have started for Cairo to-day to man the eight iron clad gun-boats which have been waiting for them more than two weeks.  Every seafaring man in the regiments from whom these were detailed was anxious to be one of them.

WASHINGTON, February 18.

Committee of ways and means recommend that the House agree to about two-thirds of the Senate’s amendments to the treasury note bill, and that they disagree to those reducing the number of U. S. notes authorized to be issued from $150,000,000 to $100,000,000; and striking out of the original provision, the $50,000,000 of the notes shall be in lieu of demand treasury notes, authorized by the act of July last.

The committee also recommends to disagree to the Senate’s amendment, that the July notes shall be receivable in payment of taxes, duties, imposts, excise depts., and demands of every kind due to the U. S., and all claims and demands of very kind except for interest upon bonds and notes, which shall be paid in coin.

The committee also disagree to amendment fixing the redemption of bonds at the pleasure of the U. S. after five years, and payable twenty years from date.

The committee recommends the retention of the proviso for the exchange of bonds of the United State, bearing interest at 7 per cent., and the disagreement to the Senate’s amendment authorizing the Secretary of the Treasury to dispose of the bonds at the market value.

The committee recommends a disagreement to the Senate’s new resolution, which pledges duties from proceeds of sales of public lands, of property of rebels as special fund, for payment in coin of interest on the bonds and notes, and for the purchase or payment of one per cent. of the entire debt, to be set apart as a sinking fund, the interest of which in like manner is to be applied to the purchase or payment of the public debt, the residue thereof to be paid into the Treasury.

The committee recommends an agreement to another new section of the Senate bill with an amendment they propose – namely, authorizing the deposit of notes or coin in exchange for certificates, and instead of 5 per cent. interest on such certificate to substitute such rates of interest which the Secretary of the Treasury from time to time proscribes, not excepting six per cent.; and any amount of notes and coin so deposited may be withdrawn from deposit at any time after ten days’ notice, by the return of the certificate.

The Tuesday reception did not take place to-night at the executive mansion, owing to the continued sickness of the President’s children, one of whom is extremely ill.

The navy department has received the flag which most prominently waved over Fort Donelson.

The Navy Department has no other dispatches from Savannah than those received through the associated press agent.

– Published in The Davenport Daily Gazette, Davenport, Iowa, Wednesday Morning, February 19, 1862, p. 1