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Progress of Events. Our special telegram from Norfolk advises as that the Lincoln Government has decided that our privateersmen are prisoners of war, and offers to exchange them for the hostages held by the Confederate authorities. Whether these terms will be accepted, or not, remains to be seen, but as there is a disposition to inaugurate a general exchange of prisoners, it is within the range of possibility that Col. Corcoran and his "compatriots" may soon regain their liberty, and the South to that extent be relieved of a burden. Surely, there never was such an instance of lowering the haughty crest of tyranny, as this "letting down" of the Lincoln Government exhibits. The tone of the European news, as foreshadowed by the copious extracts published this morning, is quite as satisfactory as could be expected. Everything encourages the South to redouble her energies, and show to the world that she has a proper claim to membership in the family of nations. The repor