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July 3.

The news of the retreat of the Union army under the command of General McClellan, from before Richmond to the James River, caused great excitement throughout the North, The details of the repulse fell upon the community with disheartening effect, and produced such a shock as had not been felt since the commencement of the war. Crowds of excited people were everywhere to be seen discussing the matter, and all sorts of inferences and conclusions were drawn therefrom.

The brig Delilah was captured off the Hole in the Wall, Abaco, by the United States steamer Quaker City.

Governors Tod, of Ohio, and Buckingham, of Connecticut, issued proclamations calling upon the citizens of their States for their quota of troops, under the call of the President for three hundred thousand men.

The bombardment of Vicksburgh was continued at short intervals all day. The rebels made an attempt to capture the mortar vessels, which lay at the levee within rifle-shot of the rebel pickets, but without success.

A skirmish occurred between a brigade of the Union army of the Potomac, on the James River, Va., under the command of Gen. Davidson, and a force of rebels, resulting in the rout of the latter, the Unionists capturing six guns and a number of prisoners.

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