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July 5.


This evening, General Kilpatrick captured a rebel train and a large number of prisoners, at a point near Monterey Gap, Va., and in the afternoon he defeated the rebel cavalry under J. E. B. Stuart, at Smithsburgh, Va.--(Doc. 82.)


A small party of rebel cavalry entered Mechanicstown, Md., and after committing some depredations, retired, taking with them a quantity of flour and several horses.--the following order was officially promulgated at the Headquarters of the army at Washington:

Commanding Officer Fort Monroe, Colonel Ludlow, Agent for the Exchange of Prisoners of War:
The President directs that you immediately place W. H. Lee and another officer selected by you, not below the rank of captain, prisoners of war, in close confinement and under strong guards; and that you notify Mr. R. Ould, confederate agent for exchange of prisoners of war, that if Captain H. W. Sawyer, First New Jersey volunteer cavalry, and Captain John Flynn, Fifty-first Indiana volunteers, or any other officers or men in the service of the United States, not guilty of crimes punishable with death by the laws of war, shall be executed by the enemy, the afore-mentioned prisoners will be immediately hung in retaliation. It is also directed, that immediately on receiving official or other authentic information of the execution of Captain Sawyer and Captain Flynn, you will proceed to hang General Lee and the other rebel officer designated, as herein above directed, and that you notify Robert Ould, Esq., of said. proceedings, and assure him that the Government of the United States will proceed to retaliate for every similar barbarous violation of the laws of civilized war.

H. W. Halleck, General-in-Chief.


The steamer Harriet Pinckney, from Bermuda, arrived at Halifax, N. S., having on board C. L. Vallandigham.--at seven o'clock this morning, John Morgan, with four thousand cavalry, attacked the Twentieth Kentucky infantry, four hundred strong, under Colonel Hanson, at Lebanon, Kentucky. After a seven hours fight, Morgan's forces commenced burning the town, setting fire to the railroad depot and six or seven houses. Colonel Hanson then surrendered, and Morgan's forces left in the direction of Spring. field.--(Docs. 47 and 103.)


A battle took place near Bolton, Miss., between the National forces under General W. T. Sherman, and the rear-guard of the rebels under Joe Johnston, in which the latter were compelled to surrender their entire force. The Union loss was very slight, while the number of rebels captured amounted to over two thousand.--General James G. Blunt, having under his command portions of the Second and Sixth Kansas, Third Wisconsin, and Fourteenth Kansas regiments, left Fort Scott for the seat of war in the far West.

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