Latest from Mexico.
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The rumor published in our last pas per of Gen. Scott being in the City of Mexco, has proven to be incorrect.-- But lhe late arrivals at New Orleans. gives us roum 10 believe that Scott is in or neal the Montrzumas by this time. The idea of negotiating a peace before the possession of the City by the Ameri can forces, IS now dissipaied. Gen. Scott, was according to the arrivals up to the 30Ih July, making every prepara ton for the departure of his troops from Puebla. Kendall writing from there under that date says:

 "jn relation to :he movements of the army can give you no other than the impression that Gen Scott will march immediately on ,he arrival of Gen. Pierce. The men composing the diyi. sIons of Ger Worth and Twiggs are probably better soldiers than any at pre- sen, in the world. 1 the frs, place, the material is equal if not superior 10 any; they are equally we'll drilled; have the best of officers 10 lead them; and what is oi the greatest importance. a greot portion of them have been in the front rank of battle in numerous fights. Nor is the divisi m Of G.n 0 litman. which wlil doubtless luke an active part in any operations yet 10 take place, much be- hind the others. The regiments com posing il, the N. York, South Carolina, and lst and 2,d Pennsylvania have been long enough in the field to become well drilled wble Ste2to"'s admirable battery is attached To it. The army thai will set down before Mexico will be the strongest and best appointed we have vel had in the field, and let the Mexicans fight ds they will the result of any con- test that may take place cannot be doubted.

 have seen gentleman who left the capital two days since. He says that the Mexicans were quietly awaiting the approach of Gen Scott, having all their works and Notifications completed. The story that the city was partially over. flowed is confirmed, but the report of the extent of the inundation, and of the sick ness it had occasioned, have been exag gerated. There was strong belief a. mong many of the foreigners that there was a perfect understanding between Gen Scott and Santa Anna, and that a peace would g'ow ou, of it. The Con- gross was sllll at loggelheads with ,he President, all business was completely al stand, and the oniy law known was that of the military.

 The oostinacy of Congress, the deep hatred of the Mexicans to the Ameri cans, and the slight hold Santa Anna has upon the people, may, and proba, ply will. prevent his own schemes aud those of the English from being carried ou,--the coming fortnight will tell thf story.

 It was supposed that Genl's. Pillow ard Pierce reached Gen. Scott abou the 2d inst. ]! such was the case, Scot most probably commenced his advance upon the city about the 4th inst. The Mexlcan force is supposed 10 be IS 900 while Scott will have something like l2, GOO or l3,000. which is sufficient for hIn 10 take the city without much trouble We may expect to hear in few days the safe possession of the city of the Montezumas by Gen. Scott.