arm) wuttiu tmvp ugi iws uni uay.Yesterday the battle was again renewed. Daring the night the Confederates evacuated lookout Mountain and retired across the intervening valley to Mission Ridge. General Hooker advanced early in the day and occupied the yielded ground. General Sskkkan also advanced to capture the remaining works on Mission Ridge. He had to pats across a valley to attack the enemy, and fought by far the most severe contest of all. The enemy poured ] their shot and shell upon his storming parties and drove them back after severe struggles. In the afternoon shkrmaw was preparing to make his third assault* when General Grant aided him withthe reserve of the army. This body inarchedout of Chattanooga, and after going a short distanceup the valley between the ridges turned to the left, and ascended the slope of Mission Ridge. At the mme time, Shiruai attacked in front. After a fierce battle the crest of the hill thus attacked on both sides was yielded, and the Confederates retired southward, down the stapes of the ridge One column halted at fioesville, jpre miles south of Chattf- 1 nooga, and another stopped on the ea -tern side It j the Chtekamauga. Thus they rested last night.The Confederates have, in ail, been driven about three miles, and now confront Grant in a new position. Their left is upon tijk centre of Mission Ridga. Their right upon the Chickamsuga. They extend around to the southeastward of Chattanooga, covering the railroad communication with Loxostreet. 1 The losses on both shies appear to have been very heavy. The Federal army claims to have^ taken five thousand prisoners. To lay will very likely witne?? another contest as fierce as ;General Bt'MSinn, whilst all this is transactingat Chattanooga, ts still shut up in Knoxville. Hiscommunication with Cumberland Gap is cut* and we hear nothing definite from tan |Los«msst still seem* to besiege him closely. Lonostrirt is- but eighty miles from Brago's camp, and has a railroad all the way The direction of tbs attack o#jChattanooga give* no indication that a jfylifll forfe jha* gone to attack Ixno*tr*et,s rear. fl / -A