"The United States steamer Valley City arrived at Hampton Roads from the blockading squadron of the Sounds of North Carolina, this morning. She brings the glorious tidings of the destruction of the rebel iron-clad ram Albemarle. The terror of the Sounds is at the bottom of Roanoke river. She was blown up by a torpedo early on the morning of the 28th ultimo; and her destruction is due to the personal heroism and reckless daring of Lieut. W. B. Cushing, of the Navy. All the particulars I have been able to collect concerning this feat, which stands prominently forth as one of the most gallant of the war, I hasten to forward for the information of the Herald's readers.

"On the night of Thursday, October 27, Lieutenant Cushing, who has on several previous occasions especially distinguished himself, manned a steam-launch with a party of thirteen officers and men, mostly volunteers, and proceeded, under cover of the darkness, up the river towards Plymouth. Eight miles from the mouth of the stream the Albemarle lay, surrounded by a pen of logs and timber, established to prevent her destruction by torpedoes.

"As he approached this framework, Lieut. Cushing was discovered by the officers of the ram, who hailed him. He gave no answer, the enemy meantime maintaining against him a severe and galling fire, to which he replied effectively with frequent doses of canister. Finding that he could not approach the ram as he desired, a complete circle was made by the Lieutenant, and the launch was again brought fairly against the "crib," bows on, pushing back a portion of it, and leaving the bows of the launch resting on the broken timbers.

"At this moment, by a most vigorous effort, Lieut. Cushing succeeded in driving a torpedo under the over-hang of the ram, and exploded it. Simultaneously with the explosion, one of the Albemarle's guns was fired, and the shot went crashing through the launch. At the same instant a dense volume of water from the torpedo came rushing into the launch, utterly disabling her.

"Lieut. Cushing then ordered his men to save themselves. He himself threw off his coat and shoes and sprang into the water. Several of his men were captured and some were drowned, but I have not been able to ascertain his exact loss. Lieut. Cushing, taking to the swamp, managed to secrete himself from the enemy's pickets, and brought up alongside of the steamer Valley City at about 11 o'clock the next night, in a small skiff which he discovered and appropriated on his way.

"The steamer Valley City brought Lieutenant Cushing as a passenger, and he reported in person to the Admiral the accomplishment of the daring mission he was specially selected to perform. Though much fatigued by the severities of his recent task, he is yet in good health and spirits, and is at this moment the hero of the squadron. He is the same officer that went to Smithville and captured General Whiting's chief of staff, while a regiment of troops was quartered in the buildings on the opposite side of the way. It was he who took a small boat up the Wilmington river, past the forts and batteries, landed and captured a rebel mail, staid three days in the enemy's country, and finally came away in safety with his trophies. But this last act of his stamps him as one of the most daring men in the service. To attack an iron-clad like the Albemarle, with a launch and a baker's dozen of men, would seem the height of reckless folly; but to have succeeded in such an enterprise, is to have earned a life lease of glory.

"In the affair, paymaster Swann, of the Otsego, is known to have been wounded, and master's mate Howarth, of the Monticello, captured. Lieut. Cushing speaks very highly of the conduct of all who were with him.

"The destruction of the ram was not definitely known until the following day, the 29th, when negroes sent to gain information returned with the glorious news. Reports from other quarters corroborated this intelligence, and finally a reconnoissance by the Valley City revealed the Albemarle resting on the bottom, with only her smoke-stack visible above the water.

"The yellow fever is said not to have entirely disappeared from Newbern, although the succession of sharp frosts in that vicinity has somewhat dispelled it. The steamer John Farron left for that port yesterday, taking an immense mail, and a number of officers who have been congregating here for some time, waiting for the sickly season to terminate."

[Mr. Oscar G. Sawyer's Despatch]