ITALIAN IRON-CLAD FLEET. Re d’Italia. Re di Portugalo. Principe di Carignano. Ancona. Castelfidardo. Maria Pia. San Martino. Affondatore. Palestro. Varese, Terribile, and Formidabile not in action. Wooden fleet did not come up. The Austrians advanced in three echelonned lines ahead, the Ferdinand Max (flag-ship) leading the right and advanced iron-clad line. The wooden frigates formed the centre line, and the gun-boats the left and rear. All in close order. The Italians on sighting the Austrian fleet formed in single line ahead, open order, covering a distance of over five miles. The head of the Italian line opened fire on coming within gunshot. The Austrians, turning together eight points to port, sent a broadside into the head of the Italian line and, resuming the former course, immediately pierced the Italian line astern of the third ship (between the Ancona and the Re d’Italia), half of his iron-clads passing through this interval and the other half between the Re d’Italia and the Palestro. The leading Italian division turned to starboard to attack the Austrian wooden fleet, and Tegethoff to foil this manœuvre turned and passed back through the same intervals. The rest of the Italian fleet closing up on the broken Austrian line, and the smoke concealing signals, the action became a mêlée. The Ferdinand Max made two attempts to ram two different vessels, both being avoided by the helm. A third attempt on the Re d’Italia was successful, striking her under the counter and sinking her. At the time, the Re was engaged with three Austrians on his bow and beam. The Italians state that his steering-gear was shot away; the Austrians, that he was backing. Three Austrians (two iron-clads and one wooden frigate) concentrated on the Palestro and set her on fire; she drew out of action and blew up in about an hour. The San Martino, fighting in company with the Re d’Italia, hauled out of action when the latter was sunk. The Affondatore (flag-ship) made two ineffectual attempts to ram, but her clumsy steering-gear and slow speed made the attempts abortive. The Re di Portugalo made a fine attempt to ram the Kaiser Max, which the latter avoided by turning _towards_ the Portugalo and going full speed, the ships rubbing sides, bringing down the Kaiser’s fore-mast, which fell on the smoke-stack and caught fire but was extinguished. The Portugalo then ran the gauntlet of the two iron-clad divisions, reaching her own line, and the Italian fleet hauled out of action, the Austrians not chasing. The Italian loss was two iron-clads; killed, 650; wounded, 40. Austrians, 136 killed and wounded, of whom three quarters belonged to the Kaiser Max. Partial success. DASHES. _Passes of the Mississippi, October 12, 1861._ At 4 a.m. the Confederate ram Manassas steamed suddenly into the Federal squadron at anchor in the Passes below New Orleans—