The Sun.
London, England, 1863-08-07 00:00:00

and Winchester. His pickets occupy the Potomac
River from Cherry Run, 13 miles west of Martins-

burg, down to Harper's Ferry. On Friday night
they drove in our pickets at the Ferry. They are
in force at Sheppardstown, Martinsburg, and
Charleston. The rumour that Lee has crossed into

Maryland is unconfirmed. The latest official infor-
mation leaves the two armies watching each other
—the rebels on the west side and the Federals on
the east aide of the Blue Ridge. (Later).—Lee's

army was in motion at three o'clock this morning
in the direction of Winchester. Four hundred rebel

cavalry attempted to cross the Potomac last night
at Nolan's Ferry with the intention of making a
raid on the railroad, but their designs were frus-
trated. The rebel cavalry have made their appear-
ance in the vicinity of Langley, near Chain Ridge.

- -
There are rumours of an important movement on
the Upper Potomac."
The Washington Star thinks that Lee is aiming
at a junction with Bragg and Johnston, to attack
Rosencranz, with a prospect, in case of defeat, of
the remains of the three rebel armies retreating
across the Mississippi into Texas or Mexico.
The Washington .Republican contains the follow-
ing :—" From the best information at hand it ap-
pears that Leo's army is near Winchester, or above
that point, while our army occupies such a position
that he cannot get to Richmond without fighting at
a disadvantage. General Lee is either holding
his position to gather:supplies from the crops in the
village, or with the aid of such reinforcements as
he may have obtained, to give another battle, or
series of battles, to the army of the Potomac. We
may expect stirring news from General Meade's
army soon."
A Washington dispatch says :—" The relative
situation of the army in the valley as understood,
is as follows :—General Meade has the Confederate
army entirely entrapped. He is evidently massing
forces to break his way through to Richmond, but
it will probably be a more difficult undertaking
than the one at Gettysburg. After all the delay
there is now not much prospect of Lee being able
to get his army back to Richmond, or even as far
as the upper end of the Shenandoah Valley."
A Chambersburg dispatch of July 3, says:—

" Lee left Winchester with his staff yesterday
morning in the direction of Middleburg and Stras-
burg. Imboden's force is known to be guarding the
mountain passes near Bath. Lee's heaviest force is
now in and around Winchester. He has been re-.
inforced from Lower Virginia and North Carolina
by a force, reported at 10,000, under D. H. Hill."
The United States steamer Circassian had arrived
at New York from Charleston, with advices to the

19th ult. A general engagement was just com-
mencing as she left. General Gilmore had erected
a masked battery in the woods, quite near Fort
Wagncr, and expressed no doubt bat that the
attack by himself and Admiral Dahlgren would
prove successful. As the early morning shadows
disappeared the attack began, and a perfect shower
of shot and shell was poured into Fort Wagner.
The Petersburg (Virginia) Express of the 23d u

referring to the cavalry expedition sent out by
General Foster, says:—" The Yankee raiders burnt
the railroad bridge overTarßiver near Rocky Mount.
They destroyed the depot at that place, tore up two
miles of the track, burnt 5,000 bales of cotton, and
a large cotton factory. The bridge over the Tar
River was on the Wilmington and Weldon
Railroad, and was about 300 yards long. They also
captured a train of cars, which contained two car
loads of ammunition and 30,0001 b. of bacon, which
were destroyed."
It was rumoured at Washington that General
Grant was to be made a major-general in the regu•
lar army. It was also reported at Washington that
Johnston was about to surrender to Sherman or
Grant, but it was impossible to get it authenticated-
" Philadelphia, July 23.
" The Council have negatived the bill appropriat-
ing 500,000 dollars to pay exemptions for drafted
men. The vote stood-18 Democrats for the bill,
and 18 Republicans and 4 Democrats against it. A
bill was subsequently passed, appropriating 1,000,000
for relief to families of drafted men."

" Cincinnati, July 23.
"Morgan crossed the Muskingum River at Eagles-
port, 18 miles below Seanesville, at ten a.m. Scouts
report his forces 1,000 strong, with three pieces of
artillery. Colonel Lemont, of the 86th Ohio, sent
his regiment and a large number of militia after
him.
" Colonel Chandler, of Seanesville, and 25 citizens
(scouts), were captured at Deerstawn last night.
" The latest reports from Eaglesport say that the
86th Regiment, under Lieutenant-Colonel MiFar-
land, is fighting the Confederates, and driving them
up the river towards Seanesville. This is not en-
tirely reliable.
" Business is suspended at Seanesville, and the
citizens are turning out en Inane to resist Morgan's

progress.
" Morgan (this p.m.) was in Guernsey Co., near
the Central Ohio Railroad, and supposed to be mak-
ing eastward for the Ohio River."

FROM THE SOUTH•WEST.

" Memphis, July 2

" General Hurlburt's scouts arrived to-day from
Okalona, Mississippi. They report Johnston at
Brandon, and Sterman in possession of Jackson.

" The Confederate generals'—Chalmers, Saun-
ders, and Ferguson—forces are at Tripoli.
" Ruggles is concentrating his forces, with the
intention probably of making a dash on our lines.

" Correspondence from Bragg's and Johnston's
armies represents them in a state of great destitu-
tion, and greatly demoralised. They give up their
posts and advise planters to stay and make the best
terms possible. Our scouts report that the majority
of the planters are anxious that we should get pos-
session of the country before Jefferson Davis has
time to conscript them.
" Johnston's army is estimated at not
exceeding
30,000.
hout the
" Great consternation exists throng
Southern country.
coo atchez, Yazoo
"The reports of our successes
rmed- Large
city, and Jackson, arc, fully _ has fallen into our
amounts of ammunition of war
hands with those places."

_____ ..____ _
________.
vmiocTpr2hneibAnyxgßeßtVAL OF THE EDINBURGH.
LIVERPOOL, Thursday,
The Liverpool, New York, and Philadelphia Corn
steamer Edinburgh, which lee:::
pang's screw
York on the 25th ult., arrived in the Mersey this
full telegraphic summary of the aci._
of the
this arrivalltyork
H ehraasi
(la already at dhye
2a appeared.
aurietd.
following as the situation of affairs at that date :
t'thwe
,6 The latest accounts of the movements
southwards.
armies of General Lee and General Meade
the effect that they are both moving
All rumours that either of them had eade are to
recrossed the
Potomac prove to be entirely without foundation.
Both armies are reported to be north of the Rap pa-
, hanuoek, 'where a great battle is very likely to