From the " 0. Picaysae, lih October. Glorious News from the Army

 ARRIVAL OF THE JAMES L. DAY.

Capitalization Of Monterey, af ter Three Days Fighting.
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The steamship James L. Day, Captain Wood, arrived from Braxos Santiago about 10 o'clock this morning. By her we have received the gl0rions news that Monterey has capiiniaied afier hres doys of despe- raie .fghting. Capt Eaton, one of the aids of Gen. Taylor, arrived on the Day, bearing the despatches for Washington. He left Monterey on the 25lh ut. Col. Kinney and one other gentleman accompanied him from Monterey. Col. Kinney kindly look charge Of packages of letters for us and brough, them to Comargo, and there delivered them 10 his companion, by whom they were faith fully delivered. We shall not forget the service

 We cannot delay the press to attemp, to write out narration of the battles. The following ''memorandan are from the pen of sn officer who was in the battles.

 Gen, Worth, who led the attack npon the city on the west side, has inamorialized him. self The fighting was desperate on our side, the Mexicans outnumhering us by two