NOVEMBER 28, 1862.--Engagement at Cane Hill, or Boston Mountains, Ark. No. 2.--Reports of Brig. Gen. James G. Blunt, U. S. Army, commanding division, with congratulatory orders.

CANE HILL, ARK., December 2, 1862.

General Marmaduke continued his flight all night, after the battle of the 28th, and is now in Van Buren. General Hindman was expected to re-enforce him at this place on the evening of that day. Prisoners, of whom I captured 25, state that Marmaduke's force was 11,000. They were compelled to abandon two pieces of artillery, disabled by my batteries. A number of their officers are killed, among them a Lieutenant-Colonel Monroe, of a Texas [Arkansas] regiment, and a Captain Martin, of an Arkansas [Missouri] regiment. The notorious Quantrill and his band were engaged in the fight, and, with Colonels Shelby and Emmett MacDonald, commanding the rear guard in the retreat across the Boston Mountains, they fought desperately. Some of Quantrill's men were killed and others taken prisoners.

My loss in killed is 5, and 4 mortally wounded, one of whom, Lieutenant-Colonel Jewell, Sixth Kansas, has since died. Lieutenant [A. H.] Campbell, Sixth Kansas, was taken prisoner. The loss of the enemy in killed is about 75. They carried most of their wounded off the field, and sent them to houses on the right and left of the road and battle-ground. All regret the death of Lieutenant-Colonel Jewell, as he was a brave and gallant officer.

Two contrabands arrived to-day from Van Buren, who state that Hind-man, with 12,000 infantry, crossed the Arkansas River from the south  Tuesday last, for the purpose of moving up to re-enforce Marmaduke, but have now all gone back to their hole.

My transportation has just come up. I occupy the same position held by Marmaduke when I attacked him, and intend holding it. They will not advance this side of the mountains, except with their combined forces; but I am prepared to meet them, and with my little army whip 25,000 of such chivalry. An officer who came inside of our lines under a flag of truce after night terminated the fighting, acknowledges that they were badly whipped and worse chased.

Lieutenant [J. A.] Johnson, Sixth Kansas, dangerously wounded; may possibly recover.

 JAS. O. BLUNT,

Brigadier-General.

 Maj. Gen. SAMUEL R. CURTIS.