The enemy moved up in force last evening about seven o'clock, in a shower of rain, to attack. I opened on them from the position which the troops occupy above the town, and from the Dahlgren battery on the mountains. The enemy then retired. Their pickets attacked ours twice last night within 300 yards of our works. A volley from General Slough's breastworks drove them back. We lost one man killed. Enemy had signal-lights on the mountains in every direction. Their system of night-signals seems to be perfect. They fire on our pickets in every case. My men are overworked. Stood by their guns all night in the rain. What has become of Generals Frémont and McDowell?

R. Saxton.

Hon. E. M. Stanton, Secretary of War.

At Williamsport on the Maryland side, twelve miles above, General Banks likewise sent a telegram to the Government at Washington.

Williamsport, May 28, 1862.

Have received information to-day which I think should be transmitted, but not published over my name, as I do not credit it altogether. A merchant from Martinsburg, well known, came to inform me that in a confidential conversation with a very prominent secessionist, also merchant of that town, he was informed that the policy of the South was changed; that they would abandon Richmond, Virginia, everything South, and invade Maryland and Washington; that every Union soldier would be driven out of the Valley immediately. This was on Friday evening, the night of attack on Front Royal. Names are given me, and the party talking one who might know the rebel plans. A prisoner was captured near Martinsburg to-day. He told the truth I am satisfied, as far as he pretended to know. He was in the fight at Front Royal and passed through Winchester two hours after our engagement. He says the rebel force was very large—not less than twenty-five thousand at Winchester and 6000 or 7000 at Front Royal; that the idea was general among the men that they were to invade Maryland. He passed Ashby yesterday, who had twenty-eight companies of cavalry under his command; was returning from Martinsburg, and moving under orders, his men said, to Berryville. There were 2000 rebels at Martinsburg when he passed that town yesterday. These reports came to me at the same time I received General Saxton's dispatch and the statement from my own officer that 4000 rebels were near Falling Waters, in my front.

N. P. Banks,
Major-General Commanding

Hon. E. M. Stanton.

Friday evening the thirtieth was as dark as Erebus. Clouds had been boiling up since dark. Huge portentous masses rose on all sides and blotted out the skies. The air was for a time oppressively hot and still. The smoke from the guns which had wrangled during the day, long and loud, hung low; the smell of powder clung. The grey troops massed on Loudoun Heights and along the Shenandoah wiped the sweat from their brows. Against the piled clouds signal-lights burned dull and red, stars of war communicating through the sultry night. The clouds rose higher yet and the lightnings began to play. A stir began in the leaves of the far-flung forests, blended with the murmur of the rivers and became rushing sound. Thunder burst, clap after clap, reverberating through the mountains. The air began to smell of rain, grew suddenly cool. Through the welcome freshness the grey troops advanced beyond Bolivar Heights; there followed a long crackle of musketry and a body of blue troops retreated across the river. The guns opened again; the grey cannon trained upon the Maryland Heights; the Maryland Heights answering sullenly. Down came the rain in torrents, the lightning flashed, the thunder rolled. The lightnings came jaggedly, bayonets of the storm, stabbing downward; the artillery of the skies dwarfed all sound below. For an hour there was desultory fighting, then it ceased. The grey troops awaiting orders, wondered, "Aren't we going to cross the river after them?" "Oh, let it alone. Old Jack knows."

Toward midnight, in the midst of a great access of lightning, rain, and thunder, fighting was renewed. It was not for long. The guns fell silent again upon Loudoun Heights; moreover the long lines of couching infantry saw by the vivid lightning the battery horses come up, wet and shining in the rain. From regiment to regiment, under the rolling thunder, ran the order. Into column! By the left flank! March!